FW: [Maybank] BoJ Operation a Trigger for JPY Gains

 

 

, GBL: BoJ Operation a Trigger for JPY Gains Global Markets Daily by Saktiandi Supaat FX Research USDJPY saw a sharp drop this morning from 113.10 to low of 112.56, triggered by BoJ's reduction in its purchases of bonds in the 10Y - 25Y and more than 25Y maturity by JPY10bn each. This adds to speculation that BoJ may remove monetary stimulus. BoJ meets on 23 Jan. Support for USDJPY at 112.20, 111.80 levels. Overnight, USD rebounded. Technical indicators have cautioned that DXY is in oversold conditions. We do not rule out further USD short squeeze given stretched positioning in USD/AXJs... Saktiandi Supaat    (65) 6320 1379    saktiandi@maybank.com.sg Christopher Wong    (65) 6320 1347    wongkl@maybank.com.sg Disclaimer This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. To unsubscribe or change preference settings, please contact your representative HERE.