JPY: USD/JPY - Continues To Trade Heavy
May-20 22:59
The overnight range was 144.10 - 144.97, Asia is currently trading around 144.45. US Stocks look a little overdone in the short-term and retraced overnight. USD/JPY remains anchored to its lows as the USD could not bounce and has traded heavily overnight.
- (Financial Times) -- ‘Yields on the longest-dated Japanese government bonds surged to record highs on Tuesday after a dismal debt auction added to investor fears of a lack of demand.”
- Bloomberg - “The Bank of Japan likely remains on track to keep scaling back its bond buying at largely the current pace with scope to continue rolling back purchases beyond March 2026 after views of surveyed market participants diverged widely.”
- Reuters - "BOJ urged to boost bond buying in wake of spike in super-long yields reut.rs/3S9aspw"
- USD/JPY continues to test its support and the bounces are very limited at the moment.
- The support between 144/145 looks important now and a break would once again bring the focus back to the pivotal 140.00 area. The price action does not look great and the market is clearly more comfortable selling rallies.
- Options : Closest significant option expiries for NY cut, based on DTCC data: 144.50($660m), 143.00($489.2m). Upcoming Strikes : 145.00($2b May 23),144.00($1.37b May 23), 140.00(1.67b May 23)
- CFTC data shows Asset managers pared back their already extensive JPY longs, and leveraged funds continue to build on their newly initiated shorts.
Data/Event : Trade Balance
Fig 1 : USD/JPY Spot Daily Chart
Source: MNI - Market News/Bloomberg
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Historical bullets
GLOBAL: Monday's Holidays
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Most of Asia is open today with only Australia, New Zealand and Hong Kong closed for Easter Monday. All of Europe including the UK is closed. The US and Canada are open as well as most of South America except for Brazil.
GOLD: Gold Jumps to New Highs as Open
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ASIA: Government Bond Issuance Today
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