Yen Extends Gains As BoJ Meeting Looms
October 27 2023 - 7:53AM
RTTF2
The Japanese yen extended gains against its major counterparts
in the European session on Friday, as Tokyo inflation exceeded
expectations in October, ahead of the Bank of Japan's monetary
policy decision due next week.
Tokyo inflation was up 3.3 percent on year in October, exceeding
expectations for an increase of 3.1 percent and up from 2.8 percent
in September.
Core CPI, which excludes volatile food prices, added an annual
2.7 percent - again exceeding forecasts for an increase of 2.5
percent, which would have been unchanged.
Sticky inflation is likely to put pressure on the BoJ to deliver
a policy tweak and revise the inflation outlook.
Japan's Chief Cabinet Secretary Hirokazu Matsuno said that the
central bank is expected to coordinate closely with the government
and guide "appropriate" monetary policy to sustainably attain its
2% inflation target.
The yen climbed to a 3-day high of 149.61 against the greenback
and a 10-day high of 165.90 against the franc, off its early lows
of 150.41 and 167.33, respectively. The next possible resistance
for the yen is seen around 147.00 against the greenback and 162.00
against the franc.
The yen advanced to 157.99 against the euro and 181.55 against
the pound, from its previous lows of 158.88 and 182.50,
respectively. The yen is seen finding resistance around 155.00
against the euro and 180.00 against the pound.
The yen touched 108.00 against the loonie, setting a fresh
3-week high. Next key resistance for the currency may be located
around the 106.00 level.
The yen edged up to 95.01 against the aussie and 87.20 against
the kiwi, reversing from its early 2-day lows of 95.36 and 87.68,
respectively. The currency may face resistance around 93.00 against
the aussie and 86.00 against the kiwi.
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