EURJPY Euro vs Japanese Yen

The Japanese yen weakened against other major currencies in the Asian session on Monday, after the Bank of Japan (BoJ) Summary of Opinions from the October meeting revealed that policymakers were split on whether to raise interest rates. Also, the political uncertainty in Japan, raised doubts over the BoJ's ability to tighten its monetary policy further.

The Summary of Opinions showed that as the BoJ moves toward additional interest rate rises, members talked about the possible effects of changes in the US economy and policy.

The minutes of the Bank of Japan's October policy meeting showed officials were divided on how soon they could raise rates again.

Japan's parliament will vote on Prime Minister Ishiba's leadership. The ruling Liberal Democratic Party (LDP), which has controlled the lower house since 2012, may now seek to build a government with the help of smaller parties.

The possibility of a weak minority administration in Japan casts doubt on the BoJ's ability to raise interest rates further, undermining the safe-haven currency.

In economic news, survey data from the Cabinet Office showed that the A measure of the public assessment of the current situation of the Japanese economy weakened further in October, and future conditions remained pessimistic. The current conditions index of the Economy Watchers' Survey, which measures the present situation of the economy, dropped to 47.5 in October from 47.8 in September. Economists had forecast the index to fall to 47.2.

The outlook index that signals future activity decreased to 48.3 from 49.7 in the previous month.

In the Asian trading today, the yen fell to a 4-day low of 153.68 against the U.S. dollar, from Friday's closing value of 152.63. The next downside target level for the yen is seen around the 155.00 region.

Against the euro, the pound and the Swiss franc, the yen dropped to 164.66, 198.43 and 175.19 from last week's closing quotes of 163.59, 197.21 and 174.26, respectively. If the yen extends its downtrend, it is likely to find support around 167.00 against the euro, 200.00 against the pound and 178.00 against the franc,

Against Australia, the New Zealand and the Canadian dollars, the yen slipped to 101.36, 91.84 and 110.39 from Friday's closing quotes of 100.43, 91.07 and 109.73, respectively. On the downside, 103.00 against the aussie, 93.00 against the kiwi and 112.00 against the loonie are seen as the next support levels for the yen.

Grafico Cross Euro vs Yen (FX:EURJPY)

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Grafico Cross Euro vs Yen (FX:EURJPY)

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