Reports concerning the BOJ’s policy-rate outlook affected the market, with dollar-yen trading in the lower ¥158 range. After the yen strengthened yesterday, today’s technical analysis identified substantial buy and sell orders in the order book.
The yen was stronger against the dollar yesterday, with the decline in U.S. 10-year Treasury yields and reports that the BOJ was not ruling out a December policy-rate hike cited as factors. The yen weakened again during the evening, but dollar-yen ultimately ended trading at a stronger-yen level than the previous close.
In today’s technical analysis of dollar-yen on the 14th, buy orders in the mid-¥157 range were particularly heavy in the order book and are attracting attention as being near a support line. Heavy buy orders are also said to be present near ¥156, which is viewed as a reference level around a round number. Meanwhile, heavy sell orders near ¥159 and ¥160 are also being watched.
Correlation analysis between dollar-yen and other currency pairs showed weak correlations over the past 24 hours for euro-yen, pound-yen and Australian dollar-yen, while euro-dollar, pound-dollar and Australian dollar-U.S. dollar showed inverse correlations. Among the 8 major currencies, the dollar’s negative reading widened, while the yen at times remained in positive territory.
Economic indicators scheduled for release today include remarks by ECB President Lagarde during European trading hours, the U.S. September CPI and the Beige Book. Additional sources for checking indicators, including a real-time U.S. dollar/Japanese yen chart and correlation analysis tools, have also been provided.