JPY

Both USD/JPY and EUR/JPY have sold off over the past week and with the BoJ policy review expected in a couple of weeks, Yen-strength scenarios seem to be gaining steam.

Yen weakness has hung around and USD/JPY and GBP/JPY both retain bullish appeal. But for those looking for Yen-strength, perhaps in anticipation of next month’s policy review from the BoJ, EUR/JPY could hold greater attraction.

Yen-weakness has remained through Japanese general elections and both EUR/JPY and GBP/JPY have put in clean breakout moves from ascending triangle formations.

The 150 level had held as resistance in USD/JPY until this week’s US open, at which point another DXY-fueled breakout appeared. The next major level up is the same that held multi-year highs in the pair in Q4 of each of the past two years.

For FX traders the USD/JPY backdrop has been full of intrigue for the past couple years, and that story isn’t yet over as the pair nears the spot that’s been the scene of some major drama in the pair after the build of the carry.

USDJPY, Silver Forecast: As the U.S. dollar strengthens and uncertainty persists around monetary policies, elections, and geopolitical tensions, both USDJPY and Silver are proceeding through the third week of October on a positive note.

The USD extended its bullish trend this week but perhaps the larger focal point was Gold, defending 2600 and continuing the rally. For next week, USD/JPY resistance and EUR/USD pullbacks are in focus.

USD/JPY has shown a strong trend after the false breakdown at 140.00 last month. And price action has shaped the narrative, with many proclaiming the return of the carry trade even as the Fed is expected to cut heavily next year.

USD/JPY bears hit back last week with a move of more than 500 pips; but they shied away less than eight pips away from a re-test of the local low.

USD/JPY remains on the move and the theme of bigger picture carry unwind continues to swing some weight. But that doesn’t mean that trends are going to show in a one-sided manner.

The carry trade continues to unwind and USD/JPY is breaking below a big level at 145.00.

The USD/JPY pair came into last week with a full head of steam but that all began to shift after a test of confluent resistance. With the fundamental tides shifting, the question now is how much life the carry trade might be able to show on the long side of the pair.

It’s been a busy and messy week across global macro markets. The push points behind the tumult are parsed through in this piece.

JPY strength has been fast and heavy: Is this but a pullback in the bigger-picture carry trade or is carry unwind in the process of taking over?

It was a strong week for the Yen which was a change-of-pace, as pullbacks in USD/JPY and AUD/JPY were driven by a suspected intervention. The big question now is whether the response to intervention remains the same as we saw in May where it reset the tables for the carry trade to continue to drive.

The Japanese Yen continues to fall even after last week’s threats of intervention. USD/JPY is trading at a fresh 37-year high as EUR/JPY, GBP/JPY and AUD/JPY have all shown considerable strength.

USD/JPY is trading at a fresh 37-year high and today’s breakout happened right at Masato Kanda was threatening to intervene. The big question now is whether the Ministry of Finance still wants to defend the Yen or whether they’ll wait until another big figure trades.