Agency: The sudden news from the Bank of Japan seems to have brought new life to USD/JPY

Earlier, foreign media quoted a Bank of Japan official as saying that officials see little cost in waiting for a rate hike while still being open to a rate hike next week, depending on data and market developments. This news has given USD/JPY a new lease of life. The pair initially fell from the 151.65-70 area to 151.02 due to initial expectations of a rate cut next week, but it reversed sharply all the way to 152.65 after the report mentioned waiting until January or longer. Today, traders are patiently waiting for the release of US CPI, and the light market may have exacerbated this shock, but the price action may give us insight into the volatility that may occur around the next Bank of Japan decision on December 19. The 50% retracement of the pair's decline from 156.75 in mid-November to the low of 148.65 at the beginning of this month is at 152.70, so we expect to see sell orders appear at this level. (Jinshi)