MARKET OUTLOOK - USD/JPY May Test the 143-142 Range

Forex - The dollar/yen parity declined to 149.96, a drop of approximately 1.0%, following rising expectations of an interest rate hike by the Bank of Japan in December based on Japan's data. According to Maybank analysts in their FX Research & Strategy report, if the support level at 150.00 is breached, the dollar could test the 142-143 yen range. Analysts stated, "We are seeing an increasing momentum for the strengthening of JPY." They also mentioned that the Tokyo CPI data released this morning continues to support the BOJ's view on tightening monetary policy and further bolsters the yen’s appreciation. Maybank anticipates that the Bank of Japan will raise its policy rate by 25 basis points to 0.50% in December. USD/JPY reached an intraday low of 149.76, the lowest since the end of October, earlier today.