JPY – Yen Falls Amid Concerns Over Japanese Interest Rate Policy

The dollar rose to a nine-month high against the yen amid concerns that the new Japanese government would attempt to influence the central bank to postpone interest rate hikes. This followed comments from Prime Minister Sanae Takaichi, who stated her government favored low interest rates and called for close coordination with the Bank of Japan; she also instructed BOJ Governor Kazuo Ueda to regularly report to the government's economic and fiscal policy meetings. Furthermore, Finance Minister Satsuki Katayama attempted to stem the yen's decline, citing recent sharp one-sided fluctuations in the exchange rate.

The dollar touched its highest level against the yen since February 4th on Thursday, reaching 155.04. Technically, the RSI and Stochastic Oscillator are trending upwards; if the dollar can hold firmly above 155, it is expected to continue its upward trend against the yen. Near-term support is expected at 154.60 and 154, while stronger support is seen at 153.60 and the 25-day moving average at 152.80. Resistance levels to watch are 155 and 156, followed by 156.80 and then 158.

Forecast Range:
Resistance: 155.00 – 156.00 – 156.80 – 158.00
Support: 154.60 – 154.00 – 153.60 – 152.80

This Week's News Highlights:

10/11
Summary of October Meeting Opinions: Bank of Japan believes the case for a near-term rate hike is becoming increasingly compelling.

11/11
Japan's unadjusted current account surplus in September was 4,483.3 billion yen, compared to 3,775.8 billion yen in the previous month.

12/11
Japan's October Corporate Price Index (CGPI) rose 0.4% month-on-month.
Japan's October Corporate Price Index (CGPI) rose 2.7% year-on-year.

Focus:
Thursday
Japan's October Domestic Corporate Price Index (CGPI) (07:50)

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