Yen's selloff continues in Asian session today, on expectation of further divergence in BoJ's policy with other major central banks. BoC's mega 100bps hike overnight prompted talks that Fed could follow later in the month, given that headline consumer inflation is showing no sign of even plateauing. Dollar remains the strongest one for the week, followed by Canadian and then Swiss Franc. Yen is the worst performing, followed by Euro, and then Sterling. Technically, CAD/JPY looks ready to follow USD/JPY in upside breakout finally. Immediate focus is now on 107.19 resistance. Firm break there will target 61.8% projection of 97.78 to 107.19 from 103.34 at 109.15, and then 100% projection at 112.75. However, for now, other Yen crosses are not showing similar bullish sign yet. In Asia, at the time of writing, Nikkei is up 0.83%. Hong Kong HSI is down -0.14%. China Shanghai SSE is up 0.26%. Singapore Strait Times is down -0.79%. Japan 10-year JGB yield is down -0.0018 at 0.236. Overnight, DOW dropped -0.67%. S&P 500 dropped -0.45%. NASDAQ dropped -0.15%. 10-year yield dropped -0.054 to 2.904. |
