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USD/JPY – Little Movement as Markets Eye US GDP, BOJ Minutes

USD/JPY is uneventful on Monday, with the pair trading slightly under the 123 level in the North American session. Trading is light, as the Japanese markets are closed for a holiday. In the US, manufacturing and housing numbers fell short of their estimates. Manufacturing PMI dipped to 52.6 points, its lowest level since October 2013. Housing Starts dropped sharply to 5.36 million, compared to 5.55 million a month earlier. The estimate stood at 5.39 million. On Tuesday, we could see some movement from the pair, with several key events on the calendar. In Japan, the BOJ will release the minutes of last week’s policy meeting. In the US, there are two key major events – Preliminary GDP and CB Consumer Confidence.

Last week’s Fed minutes did not confirm a December rate hike, but most analysts feel that the long-awaited move will indeed occur next month. Market [1] expectations have risen to 66% that the Fed will make a move next month [1], and recent comments by Fed policymakers have hinted that a rate move is a strong possibility. At the past two policy meetings, the vote against a rate hike was 9-1, but clearly that will not be the outcome at the December meeting. With the US economy showing improvement and employment and consumer indicators pointing upwards, the markets appear prepared for a small hike of 0.25% or 0.50%, and there is a growing view that a modest move would not cause turbulence on the global markets [2]. One remaining question mark in the rate move puzzle is that of inflation levels. Recent inflation readings have been weak, and the Fed has repeatedly stated that inflation is a key consideration in any decision to raise rates. The markets will get a look at key inflation indicators shortly before the critical Fed policy meeting on December 16.

USD/JPY Fundamentals

Upcoming Key Events

Tuesday (Nov. 24)

*Key releases are highlighted in bold

*All release times are GMT


USD/JPY for Monday, November 23, 2015

USD/JPY November 23 at 18:30 GMT

USD/JPY 122.86 H: 123.26 L: 122.90


USD/JPY Technical

S3 S2 S1 R1 R2 R3
120.40 121.50 122.40 123.74 125.63 126.84

Further levels in both directions:


OANDA’s Open Positions Ratio

In the USD/JPY ratio, long positions retain a majority of positions (58%), which is indicative of trader bias towards the pair moving higher.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [6]

Market Analyst at OANDA [7]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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