Analysis

The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan.

The USD/JPY pair slides to near 154.00 in Thursday’s European session. The asset weakens even though the US Dollar (USD) edges higher, with the US Dollar Index (DXY) rising to near 106.70.

The US Dollar (USD) could pull back further; any decline is likely limited to a test of 154.35. In the longer run, USD is expected to trade in a range, likely between 153.30 and 156.50, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The GBP/JPY cross pares its recent gains, trading around 195.80 during the early European hours on Thursday.

The EUR/JPY cross resumes the upside to near 164.30 during the early European session on Wednesday.

The GBP/JPY cross retraces its recent gains, trading near 195.50 during European hours.

Japan equities were lower at the close on Monday, as losses in the Real Estate, Shipbuilding and Financial Services sectors propelled shares lower.

The Japanese Yen (JPY) extends its losing streak against the US Dollar (USD) for the fifth consecutive session, following the release of Japan’s Q3 Gross Domestic Product (GDP) data on Friday. The upside potential of the USD/JPY pair is supported by the strength of the US Dollar (USD).

Japan equities were lower at the close on Thursday, as losses in the Precision Instruments, Automobiles&Parts and Power sectors propelled shares lower.

Japan equities were lower at the close on Wednesday, as losses in the Transportation Equipment, Shipbuilding and Trading sectors propelled shares lower.

Japan equities were lower at the close on Tuesday, as losses in the Transportation Equipment, Shipbuilding and Trading sectors propelled shares lower.

AUD/JPY retraces its recent losses from the previous session, trading around 101.20 during early European hours on Monday.

Japan equities were higher at the close on Friday, as gains in the Textile, Shipbuilding and Steel sectors propelled shares higher.

Japan’s Finance Minister Katsunobu Kato on Friday that he “will closely monitor the impact of Trump's policies on Japan's economy.” Additional quotes Won't comment on forex levels.

USD/JPY rose, as polls skewed in favour of Trump at point of writing. Pair was last seen at 153.91. Daily momentum is flat while RSI rose.

Japan equities were higher at the close on Tuesday, as gains in the Glass, Transportation Equipment and Banking sectors propelled shares higher.

NZD/JPY extended its decline on Monday, dropping to 90.90.

The US Dollar (USD) could trade with a downward bias; as momentum is not strong, any decline is unlikely to break clearly below 151.50. In the longer, USD advance from early last month has ended.

The Japanese Yen (JPY) gains ground on Monday as the US Dollar (USD) declines, possibly driven by rising uncertainty surrounding Tuesday's US presidential election.

The AUD/JPY pair remains subdued for the second day, hovering around 100.00 during the European session after the release of mixed Q3 Producer Price Index (PPI) data on Friday.