BOJ Talks USDJPY Down, But Lower Tokyo CPI Supports Uptrend
The BOJ governor Ueda made some threatening comments yesterday sending USDJPY 1.5 cents down, but the lower Tokyo CPI contradicts his point.
The BOJ governor Ueda made some threatening comments yesterday sending USDJPY 1.5 cents down, but the lower Tokyo CPI contradicts his point. USD/JPY surged more than 10 cents higher in October, which has the Bank of Japan worried and the Yen did surge all day yesterday, with USD/JPY falling around 180 pips lower, partly due to a retreat in the USD, but it’s not certain whether they will Ueda’s remarks will keep this forex pair down.
The USD/JPY surged by around 12 cents in October, rising above 153 as USD buying strengthened. Moving averages, particularly the 50 and 20 SMAs on the H4 chart, acted as strong support, signaling solid bullish momentum. In response, BOJ Governor Ueda made hawkish comments, exceeding inflation forecasts to help boost the yen.
USD/JPY Chart Daily – MAs Stand Ready to Provide Support
Japanese officials, including Finance Minister Kato, voiced concerns about the yen’s volatility. With Japanese elections approaching this weekend, the pullback in USD/JPY could also be driven by profit-taking on long positions ahead of the vote. Last night we also had the Tokyo Core CPI inflation report, which was expected to show a slowdown in October.
Tokyo Core CPI Report for October
USD/JPY Live Chart
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