Yesterday was a rough day for the dollar-yen and cross-yen exchanges. The background is that the Bank of Japan unexpectedly announced an expansion of the YCC fluctuation range. Although Bank of Japan Governor Kuroda denied any moves toward an exit, the market has strengthened yen-buying as a substantial interest rate hike. The dollar/yen pair temporarily dropped from the 137 yen level before the announcement to the 130.50 level in the NY market. Yen-buying continued for almost the entire day. However, from the latter half of NY, yen buying has stopped. In the Tokyo market, buybacks are also dominant, and the stock has rebounded to the 132 yen level. The cross yen is also moving in the same way.
The range so far this year is from 113.47 (1/24) to 151.95 (10/21). It has a wide range of 38.48 yen. The half price level is 132.71 level. In times of turmoil, it is often easy to impress with simple numbers. Attention will be paid to the near-term upside point at the half-price level of the annual range. As for the future trend, I would like to carefully check whether this level will become resistance or turn to support.
Continue to buy JPY.