January Services PMI
This strong services PMI reading of 53.7 for January shows continued expansion in a key part of the economy. This data will likely increase speculation about the Bank of Japan’s next policy move. We believe this positive data strengthens the case for further monetary policy normalization, following the end of negative rates back in late 2025. After seeing USD/JPY remain stubbornly high for much of last year, this could fuel bets on yen appreciation. Traders might consider buying JPY call options or selling out-of-the-money call options on the USD/JPY pair. For the Nikkei 225, the outlook is more complex, even after its historic run in 2025 where it surpassed the 40,000 mark. While a robust domestic economy supports corporate earnings, a rapidly strengthening yen could hurt the profits of Japan’s major exporters. We could see traders using options strategies like collars to protect long equity positions from downside risk while capping some upside.Focus on Inflation and Wage Negotiations
Our focus in the coming weeks will be on upcoming inflation figures and any rhetoric surrounding the “shunto” spring wage negotiations. With core inflation hovering around 2.5% through the end of 2025, strong wage growth would be the final catalyst the BoJ needs to signal another rate hike. Increased volatility in interest rate swaps and yen options is expected around these key data releases. Create your live VT Markets account and start trading now.
เริ่มซื้อขายทันที – คลิกที่นี่ เพื่อสร้างบัญชีจริงของ VT Markets
