USD/JPY: Next support comes in at the 110.84 November low – HSBC

Analysts at HSBC provide their thoughts on the Yen in an overnight note, following Tuesday’s reduction in JGBs purchases by the BoJ.

Key Quotes:

“The JPY is stronger - extending gains following Tuesday's surprise cut in bond purchases.

While we are not convinced the BOJ's move was a signal of a pivot to the exit, it seems that the sentiment shift in the short term from the announcement has caused a larger shake out of long USD-JPY positions.

... Next support comes in at the 110.84 November low.”