<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.