FX Update- JPY
JPY is higher vs. most major currencies thanks to the global sell-off in equities following the BOJ’s decision to leave its benchmark rate unchanged at 0.5%. The much anticipated rate decision failed to yield a resurgence in the carry trade as global risk appetites remained meager in the face of continued banking sector issues in both Europe and the US.
USD/JPY, down 0.3% to 109.79, continues to be stuck in the lower third of today’s range and is just below the 9-day moving average at 109.85. USD/JPY has traded below 110 the entire afternoon and appears to be experiencing a near-term plateau after slipping below lower trend line support from its upward trend starting mid-July.
GBP/JPY, down 0.25% to 204.88, has taken back a good portion of its earlier losses and continues to show near term consolidation around 205. EUR/JPY, up 0.15% to 162.05, has enjoyed a generous rebound this afternoon and is finding marginal support above 162. EUR/JPY is also indicating consolidation around 1.62 and is just below its 200-Day moving average at 162.219.