USDJPY H4: WE HAD OBSERVED A CLEAR LANDING NEAR 140.00

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USDJPY H4: WE HAD OBSERVED A CLEAR LANDING NEAR 140.00

The USD/JPY sharply rises over 146.50 as traders reevaluate their bets in favor of a Fed rate drop in March. Fed Governor Bostic anticipates a deceleration in the inflation rate's decline toward 2%. Positive PPI statistics from Japan did not provide the Japanese Yen with any support.

The December release of US economic statistics showed that while labor demand remains stable and the final leg of consumer price inflation is still obstinate, business owners are still lowering the cost of products and services at the factory gates. This suggests that there is still a great deal of concern about inflation sticking around.

According to the CME Fedwatch tool, traders believe there is a 66% likelihood, as opposed to a 70% possibility, that the Fed will lower interest rates by 25 basis points (bps) in March. Raphael Bostic, the president of the Atlanta Fed, cautioned about the inflation's slow return to the 2% objective in his remarks, which delayed the market's expectations of early rate decreases.

Any intervention or action taken by the BoJ shall be temporary.
Mr. Yen advises staying away from Yen.
BoJ increased the game of interest rate differentials while maintaining policy.
Japan remains a hopeless situation.
As inflation in Japan reaches multi-year highs, the BoJ remains unmoved.
BoJ is not likely to go off track.
BoJ sticks on the cautious course.
It is doubtful that FX intervention will stop yen weakening.
The BoJ is unlikely to want to protect the yen and is unable to do so.
growing differences in monetary policy between the Fed and the dovish BoJ.

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