While US GDP growth exceeded market expectations, USD/JPY moved into the low ¥157 range. The market remains focused ahead of the Bank of Japan’s announcement of its meeting results.
USD/JPY ended the previous day with the yen stronger. Trading lacked a clear direction from the morning and remained similarly subdued into the evening, but US quarterly GDP came in above market expectations, while the PCE deflator was also released in line with expectations. As a result, USD/JPY remained within its range and closed with the yen on the stronger side. Today is the second day of the Bank of Japan’s Monetary Policy Meeting, with an announcement on the policy rate scheduled after the meeting concludes.
Today, 30 October, chart analysis shows strong buying orders in the low ¥157 range for USD/JPY, with substantial buying orders also confirmed around ¥156. Meanwhile, selling orders are heavy in the mid-¥158 range, and concentrated in the mid-¥157 range. The order-book situation is interpreted as showing orders placed at levels viewed as support and selling orders near resistance levels.
USD/JPY has had a weak correlation with other currency pairs over the past 24 hours, while a weak inverse correlation with EUR/USD has been observed. In an analysis of the relative strength of the 8 major currencies, the Swiss franc is currently the strongest and the Australian dollar the weakest. The yen has fluctuated around zero and was slightly negative as of the morning.
Economic indicators scheduled for release today include the Bank of Japan’s Outlook Report, the Bank of Japan Monetary Policy Meeting and policy-rate announcement, Governor Ueda’s press conference, and EU GDP for July–September. Real-time USD/JPY rates and market-news content are also provided.