JPY Japanese Yen - Japanese Yen Softens Continues, Expectations for Rate Hike in Japan Next Week Weaken

In Japan, market participants have reduced their bets on a rate hike in Japan next week. According to a Reuters report on Thursday, the Bank of Japan is inclined to keep rates unchanged next week as policymakers are more willing to spend more time examining overseas risks and clues about next year's wage outlook. However, the shift in expectations towards a rate hike in January by the Bank of Japan has not prompted investors to heavily buy the USD/JPY. According to technical charts, the RSI and stochastic indicators are still trending lower, with the 10-day moving average crossing below the 25-day moving average, forming a bearish crossover. The exchange rate also recently fell below the 25-day moving average, signaling a further short-term adjustment in the USD/JPY pair. Immediate support levels are seen at 151 and 149.60, with further support expected at the 100-day moving average of 148.60 and 148, with the next key reference at 147.30. As for immediate resistance, it is expected around the 25-day moving average of 152.80, with major resistance seen at 154.50 and 155 levels.

Forecast range:
Resistance: 152.80 - 154.50 - 155.00
Support: 151.00 - 149.60 - 148.60 - 148.00

News Summary
December 9
Japan's November service industry sentiment index at 49.4
Revised contribution of external demand to GDP in the third quarter in Japan is -0.2%
Revised real GDP growth rate quarter on quarter in Japan for the third quarter is 1.2%
Revised real GDP growth rate for Japan in the third quarter compared to the previous quarter is 0.3%
Revised capital expenditure in Japan for the third quarter decreased by 0.1% from the previous quarter
Revised private consumption in Japan for the third quarter grew by 0.7% from the previous quarter
Japan's current account surplus in October is ¥2.46 trillion

Focus:
Friday: Japan's Q4 Tankan Report (07:50)

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