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Oct 12 - 03:55 PM

USD/JPY - Post-CPI Rise Has 150 And Nearby 2023'S Highs In Play, Sales Eyed

By Randolph Donney  —  Oct 12 - 02:10 PM
  • USD/JPY rallied back toward 2023's 150.165 peak on post-CPI Tsy yld surge

  • Uptrend had already reasserted itself before that on Thursday

  • CPI data were very close to f/c, but overall increase, services above

  • Gains aided by corrections in O/B USD, Tsy ylds reversing at key levels

  • Haven USD and JPY both up amid risk retreat, but higher-yld USD does best

  • USD/JPY focus now is on whether a 150 breakout can be sustained

  • That after Oct. 3 brief 150.165-147.30 bloodbath

  • And with upper 21- and 30-day Bollis both by the Oct. 3 peak

  • Might need Tues's US retail sales to beat to lift 150+ confidence

  • 2- and 10-yr Tsy-JGB yld spreads at 5.0% & 3.95% remain bullish

  • Though both are below their recent highs

  • Best-case scenario a test of 2023's channel top by 2022's 151.94 peak EBS

  • Bigger risk is a major bearish divergence top after next 150 clearance

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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