<p style=““ class=“text-align-justify“>It’s a risk-on day and these days that tends to translate to a softer USD/JPY as <a target=“_blank“ href=“https://www.forexlive.com/news/10-year-treasury-yields-retreat-back-below-4-20221101/“ target=“_blank“>bonds are also bid</a> alongside equities in trading today. Not to mention that the dollar has been more favoured as a safety currency this year, so any risk-positive momentum is likely to lead to a fall in USD/JPY such is the one today.</p><p style=““ class=“text-align-justify“>The pair is down 0.8% to 147.47 and closing in on its 100-hour moving average (red line) next at 147.24. A drop below that will see sellers regain near-term control with a keen emphasis to try and take a run at 145.00 to gather further momentum.</p><p style=““ class=“text-align-justify“>For now, Japan officials can take comfort in the recent price action – in the sense that we are not seeing buyers overstep to take a run at the 150.00 level again since two weeks ago.</p><p style=““ class=“text-align-justify“>But more importantly I would say, is that one should be paying attention to some subtle shifts in communique from Japan as of late. The BOJ did it on Friday <a target=“_blank“ href=“https://www.forexlive.com/centralbank/boj-announces-it-leaves-monetary-policy-unchanged-20221028/“ target=“_blank“>here</a> and we also got remarks from finance minister Suzuki earlier today <a target=“_blank“ href=“https://www.forexlive.com/news/japans-suzuki-further-sharp-yen-weakening-is-unfavourable-with-inflation-being-an-issue-20221101/“ target=“_blank“>here</a>. I would say it is premature to say that this is the turning point in the BOJ pivot argument but I am open to the idea that perhaps domestic authorities are starting to accept that this is the only option to really arrest any further yen decline.</p><p style=““ class=“text-align-justify“>Besides, with the rest of the world having to deal with rampaging <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1″ class=“terms__main-term“>inflation</a>, is it too far-fetched to believe that some of that will eventually seep into the Japanese economy?</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior 48.4</li></ul><p style=““ class=“text-align-justify“>A slight revision higher but it still marks a modest contraction of the manufacturing sector in the UK as output, new orders and new export business all decline. That comes despite input cost and selling price inflation easing slightly on the month. S&P Global notes that:</p><p style=““ class=“text-align-justify“>“UK manufacturing production suffered a further decline at the start of the fourth quarter, with the sector buffeted by weak demand, high inflation, supply-chain constraints and heightened political and economic uncertainties. New work intakes fell at the quickest pace since May 2020 as demand in domestic and export markets weakened. While the downturn has lessened the pressure on prices, the weak pound and high energy prices mean elevated cost <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_3″ class=“terms__main-term“>inflation</a> remains a prime concern for manufacturers. </p><p style=““ class=“text-align-justify“>“The darkening situation also knocked business optimism down to a two-and-a-half year low, as concerns about the weak demand outlook, recession, inflationary pressure and sustained uncertainty hit confidence. The labour market picture has also deteriorated, with companies cutting jobs for the first time in almost two years while still struggling to recruit and retain appropriate staff. On current form manufacturing is in no position to help prevent the broader UK economy from sliding into recession.“</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>It’s essentially a risk-on day as equities are surging, with European indices up over 1% and S&P 500 futures up 27 points, or 0.7%, at the moment. Bonds are also strongly bid (which these days is a positive development for risk) with 10-year Treasury yields falling back to 3.98%, down 9.5 bps on the day:</p><p style=““ class=“text-align-justify“>This is putting the dollar in the pressure cooker as the greenback is feeling the heat in trading today. USD/JPY is down about 100 pips to 147.70 with the dollar lagging across the board.</p>

This article was written by Justin Low at forexlive.com.