BOJ Inflation Rhetoric Tries to Cool USDJPY Momentum at 153

USDJPY surged almost 12 cents in October, climbing above 153 yesterday, and the Bank of Japan was on the wires making some hawkish comments. The BOJ governor Ueda was beating the inflation dram last night again, in hopes of talking the Yen higher and this pair lower.

USD/JPY Chart Daily – All Obstacles Have Been Broken

The 100-day Simple Moving Average (SMA) initially acted as a resistance level on the daily chart, preventing further gains in USD/JPY. However, on Monday, as safe-haven currencies like the CHF and JPY weakened, the USD/JPY finally broke through the critical 150 level.

Both the 100-day and other key moving averages were surpassed on the daily chart, and bullish momentum increased significantly yesterday. Last week, buyers made attempts to push the pair above the 150 mark, but global uncertainties continued to support safe-haven currencies, keeping the upward move in check.

Bank of Japan Governor Ueda Commenting on Inflation

• Underlying inflation: Rising slowly
• 2% inflation target: Still taking time to achieve sustainably
• Inflation expectations: Difficult to shift when anchored around zero
• Monetary policy signaling: BOJ can’t telegraph all future actions in advance
• Risks of gradual policy: Slow rate increases may create expectations of prolonged low rates, potentially fueling speculative positions

BOJ governor Ueda made some comments yesterday. Governor Ueda acknowledges that inflation is progressing slowly, and while the 2% target remains elusive, there are challenges in managing market expectations. A gradual approach to raising rates risks speculative build-ups if markets assume low rates will persist too long.

Japan Flash Manufacturing PMI for October

USD/JPY Live Chart

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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