Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Japanese yen (JPY) remains flat against the US dollar (USD), underperforming G10 peers in terms of subdued volume. USD/JPY price action suggests consolidation in the 157.50-160.50 range, with a flat RSI signaling circumscribed momentum. A weaker trade balance due to higher energy imports and Friday’s release of the Consumer Price Index (CPI) set the tone ahead of next week’s policy meeting of the Bank of Japan (BoJ).
Flat angular momentum in the 157.50-160.50 band
“The yen enters Wednesday’s NA session unchanged against the USD and is relatively underperforming among the G10 in terms of generally calm trading.”
“The price action for USD/JPY is leaning toward consolidation and a flat local range roughly between 157.50 and 160.50.”
“RSI is flat and offers little in terms of momentum.”
“The headline releases included disappointing trade news, with the smaller balance reduced by higher (energy) imports in March.”
“Short-term risks lie in Friday’s March CPI release, the last major data point before next week’s BoJ decision.”
(This article was created with the aid of an artificial intelligence tool and has been reviewed by an editor.)
