In the market on the morning of the 11th, USD/JPY is the focus of growing views that the possibility of a major rate hike at the December FOMC has emerged, with attention centered on whether the 200-day moving average can hold. The expected range is ¥158.000 to ¥159.400.
The morning forecast for USD/JPY is a range of ¥158.000-¥159.400, while the previous day's close was around ¥158.77. Against the backdrop of comments by FRB Governor Waller that "if October CPI exceeds +0.3% month on month, a major 0.50% rate hike should be considered," and October U.S. headline and core CPI exceeding market expectations, the possibility of a major rate hike at the December FOMC has again become a topic of discussion.
USD/JPY has broken above its 200-day moving average on a closing-price basis for the fourth time in the past several months, but on the previous three occasions it fell below the 200-day line again the following day. The focus today will be on whether the breakout can persist, while attention will also center on comments by Federal Reserve officials scheduled to speak during Tokyo hours.
U.S. markets will be closed today for the Veterans Day holiday, and market activity is expected to be limited as the number of market participants declines. Currency-market movements may therefore be contained.
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