The BOJ now has an added problem for the USD/JPY

As you might be aware the Chinese currency has been weakening over the past couple of weeks, following the pledges and determination of the Chinese authorities to try and put their economy back on track. So, the USD/CNH (Offshore Yuan versus the dollar) has been pushing above 7.3000. It was below 7.10 at the start of November. So, this bout of renewed Yuan weakness has helped to undermine the Yen too and that is one part of why the USD/JPY has risen above 154 in recent days. Of course it is not the only reason. We have higher US yields and a growing belief the BOJ will keep interest rates on hold later this week. Yesterday afternoon the USD/JPY reached a new interim rebound high at 154.47. That was just shy of the next noted resistance level outlined to you ahead of that high. That was and still is in place at 154.49. The USD/JPY later closed in the US at 154.15. The price action so far today has been covered by 153.80 to 154.35. So, alongside keeping an eye on US yields again today, it might be wise to keep an eye on the USD/CNH in the days ahead too, as we wait to see if the BOJ will look to counter that later this week and raise interest rates once more. Oh, do not forget the Fed is in the mix tomorrow evening too. The USD/JPY is currently trading at 154.07