The yen made large intraday gains on 22 October against most major currencies, but a significant amount of these were retraced by the late afternoon GMT. Traders are looking ahead to the BoJ’s meeting on 30 October, which is unlikely to result in a change of policy, although the board might give some hints on how it views the situation with inflation. The differential between the pound and yen will probably increase to 2.75% on 5 November.
¥212 was the area of 21 October’s high, so it would be a possible initial target, although the slow stochastic signals were overbought. Volume has generally increased since late August, which might indicate more relatively high volatility to come.
¥207.50 seems to be the main static support for now, which is unlikely to be broken barring major developments like rumors of another intervention. A close above the 50 SMA might confirm more upward momentum to come sooner or later.
This article was submitted by Michael Stark, financial content lead at Exness.
For the latest analysis, ideas for trading and more, follow Michael on X: @MStarkExness.
The opinions in this article are personal to the writer; they do not represent those of Exness. This is not a recommendation to trade.
