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USD/JPY Weekly Outlook

USD/JPY Weekly Outlook

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USD/JPY directional risks skewing lower as key resistance zone looms: the week ahead

USD/JPY continues to track US Treasury yields closely, while Japanese domestic factors remain largely irrelevant in the absence of a major policy shift. Thursday’s US jobless claims and retail sales reports are the key events, carrying the potential to meaningfully alter the US interest rate outlook. Directional risks appear slightly skewed to the downside, especially if labour data weakens.

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USD/JPY surges on US rates rethink; Fed, bond auctions, inflation report to drive direction: the week ahead

USD/JPY is likely to take its cues from US bond yields this week, putting speeches from Federal Reserve officials, Treasury auctions and key consumer price inflation data firmly in the drivers’ seat. The only obvious exception to the rule would be a major escalation or de-escalation of tensions in the Middle East, an outcome that is incredibly difficult to predict.

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USD/JPY biased lower unless US unemployment reverses its upward trend

The USD/JPY outlook changed materially last Friday with the price careening through multiple supports as Fed rate cut bets swelled. With a raft of fresh US labour market indicators to digest this week, it may take an unlikely decline in the US unemployment rate to prevent further downside ahead.

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September 29, 2024 04:00 PM

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