20 Mar 2015
BoJ will not ease again, go short on USD/JPY – GrowthAces
FXStreet (Barcelona) - The Growth Aces Research Team, remain bearish on USD/JPY, suggesting going short on the pair, targeting 119.00 levels.
Key Quotes
“Bank of Japan Governor Haruhiko Kuroda reiterated that markets should not expect the BOJ to ease again if the underlying slowdown in inflation was driven largely by lower energy costs.”
“Kuroda countered criticism that the BOJ's stimulus programme was not working, arguing that consumer prices rose for 20 months in a row, the longest running streak since 1998. Base pay rose last year for the first time in about 20 years, he added, voicing hope that companies will keep raising wages to encourage consumers to spend more rather than save.”
“He dismissed views that the massive monetary stimulus programmes deployed by advanced economies were triggering a "currency war" of competitive exchange-rate devaluations.”
“Kuroda’s comments suggest that we should not count on acceleration of BOJ monetary easing.”
“Moreover, our view is that the USD has ended its rally on the broad market. That is why short position on the USD/JPY is justified. However, the risk on this position is higher and the scale of the USD/JPY fall could be limited.”
“We have got USD/JPY short at 121.20, the target is 119.00 and the stop-loss is at 122.30.”
“Resistance: 121.04 (high Mar 19) ,121.41 (high Mar 17), 121.57 (high Mar 13)”
“Support: 120.61 (session low Mar 20), 120.44 (hourly low Mar 19), 119.68 (low Mar 19)”
Key Quotes
“Bank of Japan Governor Haruhiko Kuroda reiterated that markets should not expect the BOJ to ease again if the underlying slowdown in inflation was driven largely by lower energy costs.”
“Kuroda countered criticism that the BOJ's stimulus programme was not working, arguing that consumer prices rose for 20 months in a row, the longest running streak since 1998. Base pay rose last year for the first time in about 20 years, he added, voicing hope that companies will keep raising wages to encourage consumers to spend more rather than save.”
“He dismissed views that the massive monetary stimulus programmes deployed by advanced economies were triggering a "currency war" of competitive exchange-rate devaluations.”
“Kuroda’s comments suggest that we should not count on acceleration of BOJ monetary easing.”
“Moreover, our view is that the USD has ended its rally on the broad market. That is why short position on the USD/JPY is justified. However, the risk on this position is higher and the scale of the USD/JPY fall could be limited.”
“We have got USD/JPY short at 121.20, the target is 119.00 and the stop-loss is at 122.30.”
“Resistance: 121.04 (high Mar 19) ,121.41 (high Mar 17), 121.57 (high Mar 13)”
“Support: 120.61 (session low Mar 20), 120.44 (hourly low Mar 19), 119.68 (low Mar 19)”