JPY: USD/JPY - Consolidates Gains Above 157.00

The overnight range was 157.11 - 157.89, Asia is currently trading around 157.55. The pair consolidated its recent gains above 157.00 albeit with a bid tone. The horse looks like it has bolted now though and Japanese officials would have to do something extraordinary to change the narrative. The path of least resistance is now a higher USD/JPY and I suspect any dips back toward the 154-155 area would be used as buying opportunities. I feel they will have to show some sign of fighting this toward or above 160, but given the current inputs this could potentially go a lot higher than that. It will be interesting when we get the CFTC data back as I suspect real money would only just be starting to turn back to a short Yen position.

• MNI BRIEF: BOJ Committed To Stable Rates, Yields - Koeda. Bank of Japan board member Junko Koeda said Thursday the Bank will implement necessary measures, including increasing bond-buying operations, to stabilise interest rates if long-term yields rise sharply.
• Bloomberg reports, “Japan PM Sanae Takaichi will unveil a ¥17.7 trillion ($112 billion) spending plan — the largest since the pandemic, according to documents seen by Bloomberg. Additional bond issuance will also be bigger than last year, people familiar said.”
• Options : Close significant option expiries for NY cut, based on DTCC data: 155.00($933m),156.00($880m), 157.00($495m) . Upcoming Close Strikes : 153.00($1.17b Nov 26), 154.00{$1.94b Nov 26), 155.00($1.46b Nov 26) - BBG.
• The USD/JPY Average True Range(ATR) for the last 10 Trading days: 113 Points
• Data/Event : Natl CPI, Trade Balance, S&P Global Japan PMI’s, Bloomberg Nov. Japan Economic Survey

Fig 1 : USD/JPY Spot Monthly Chart

Source: MNI - Market News/Bloomberg Finance L.P