USDJPY : Expected to go downhill without braking
Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo, said, ``The USD/JPY broke through the 150 threshold at a time of low liquidity, probably due to the influence of speculators.'' The US dollar/yen pair's upside potential will be limited due to concerns about intervention. People will continue to be nervous. ”
Fukuhiro Ezawa, head of Tokyo Financial Markets at Standard Chartered Bank, said, ``The rapid fall of USD/JPY from 150 is a sign that algorithmic funds are increasing their sell orders due to concerns about interference.''
The yen's depreciation is due to the large difference in interest rates with the United States, and the yield on 10-year U.S. bonds is 4.96%, about six times the yield on Japanese government bonds with the same maturity (0.835%). Differences in monetary policy exacerbate the situation. The Bank of Japan said it will continue to maintain supportive policies to achieve a stable and sustainable 2% inflation target. Investors continue to monitor geopolitical tensions in the Middle East as they await the Bank of Japan's monetary policy meeting on October 30-31.
Fukuhiro Ezawa, head of Tokyo Financial Markets at Standard Chartered Bank, said, ``The rapid fall of USD/JPY from 150 is a sign that algorithmic funds are increasing their sell orders due to concerns about interference.''
The yen's depreciation is due to the large difference in interest rates with the United States, and the yield on 10-year U.S. bonds is 4.96%, about six times the yield on Japanese government bonds with the same maturity (0.835%). Differences in monetary policy exacerbate the situation. The Bank of Japan said it will continue to maintain supportive policies to achieve a stable and sustainable 2% inflation target. Investors continue to monitor geopolitical tensions in the Middle East as they await the Bank of Japan's monetary policy meeting on October 30-31.
✅TP: 149.60
❌SL: 150.20