No significant events are expected today.

The Japanese yen (JPY) rose against its American counterpart during the Asian session on Friday and currently seems to have broken a two-day losing streak, reaching its lowest level since early August noted the previous day. The yen strengthened slightly in response to verbal interventions from Japanese authorities and stronger inflation data in the country, providing the Bank of Japan (BoJ) with an opportunity to raise interest rates.

However, investors seem convinced that the Bank of Japan will not raise interest rates this year amid uncertainty regarding the new political leadership’s stance on monetary policy ahead of the general elections on October 27. This, along with positive risk sentiment, is likely to limit any significant strengthening of the Japanese yen against the backdrop of strong bullish sentiment surrounding the US dollar (USD).

Japan’s Deputy Finance Minister for International Affairs, or the Chief Currency Diplomat, Atsushi Mimura, noted this Friday that the recent movements of the Japanese yen have been somewhat rapid and one-sided, and that excessive volatility in the currency market is undesirable.

Moreover, a Japanese government official stated that it is important for currencies to move stably, reflecting fundamentals, and that authorities are closely monitoring currency market movements, including speculative activities.

Meanwhile, markets reacted weakly to macroeconomic data from China, which showed that the country’s economy grew by 0.9% in the third quarter of 2024, with an annual growth rate of 4.6%, as retail sales and industrial production exceeded forecasts.

Recommendations: Monitor the level of 149.70; if it consolidates below, consider Sell positions; if it rebounds, consider Buy positions.