Usdjpy Sinks As Market Eyes Us Housing Data

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Usdjpy Sinks As Market Eyes Us Housing Data

USD/JPY Sinks Under 150.50 As Market Eyes US Housing Data

The cautious mood in the FX market is also showing its effects on the USD/JPY, which continues to drop lower. In addition, the JPY is also under pressure as the BoJ maintains a dovish stance with no end in sight.

Ueda (BoJ Governor) has once again highlighted the need for an accommodative monetary policy in Japan. At the same time, the Japanese government continues to support the JPY in the FX market.

Against this backdrop, it makes sense for the USD/JPY to turn lower, which has already crossed the 150.50 support & is now looking at 150.00.

USD/JPY Trades Eye 150.00 Support Level

The overall trajectory of the USD/JPY is on the downside, which will likely continue in the next week as well. For now, the USD/JPY trades at 150.30, with a higher risk of touching the 150 support level.

In the USA, the Federal Reserve is also expected not to make any changes to its interest rate policy. In addition, the US data as of late is also downbeat, which suggests that no more rate hikes are on the cards.

According to Japan's Deputy FM, the government remains committed to intervening in the FX market. These actions will be taken if they believe that the value of JPY against other currencies is becoming too low. As for the exact USD/JPY levels that will warrant an intervention, no distinction was made.

Looking ahead, we have the inflation of Japan due in the next few days. According to analysts, October's inflation reading in Japan will be near 3.0%. Considering that last month's reading was 2.8%, that will be a jump of +0.2%.

The upcoming US Housing Starts and Building Permits will also be closely watched by the USD/JPY traders. According to the experts, both of these indexes will register a decline, which will increase the chance of no rate hikes from the Fed.

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