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Dec 18 - 07:55 PM

USD/JPY - Higher With US Yields; Hawkish Fed May Force A BOJ Hike

By Krishna K  —  Dec 18 - 06:05 PM
  • USD/JPY steady in early Asia after closing 0.8% higher on Wednesday

  • Boosted by higher U.S. yields as uber-hawkish Fed surprises markets

  • Fed cuts rates 25 bps, signals slower pace of future cuts, firmer inflation

  • Pencils in fewer cuts in 2025, just two 25 bps rate cuts from 4 previously

  • U.S. 10-yr yield up 14 bps, 2-yr +12 bps; BOJ rate decision key Thursday

  • BOJ may be forced to raise rates to soften impact on JPY from hawkish Fed

  • Majority of economists expect BOJ to keep rates steady at 0.25%

  • Over 90% of market players expect BOJ to keep rates steady Thu, survey shows

  • Resistance 154.85, 76.4% of 156.76-148.65 drop, 155.40-50, 155.90-156.00

  • Support 154.10-20, 153.40-50; Wednesday range 153.33-154.87

  • For more click on FXBUZ

Source:
London Stock Exchange Group | Thomson Reuters

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