21 May 2015
Yen continues to feel the pressure - BTMU
FXStreet (Guatemala) - Lee Hardman, currency analyst at Bank The Bank of Tokyo Mitsubishi UFJ noted that the yen continues to weaken.
Key Quotes:
"Extending its decline over the last month or so. The yen has even underperformed the US dollar over this period lifting USD/JPY towards its highest level since March. The next key resistance level is at 122.00 which if broken would open the door to another leg higher for the pair reinforcing our confidence that the US dollar has more broadly formed a near-term bottom."
"Speculative short yen positions have been cut back sharply. Speculative yen selling would likely intensify again if USD/JPY broke higher."
"The BoJ is not expected to ease monetary policy further at tomorrow’s meeting and as such is unlikely to provide a fresh trigger for yen selling. Economic growth in Japan strengthened in Q1 as both personal consumption and business investment accelerated."
"However it was flattered by a large inventory build which is likely to see growth slow in Q2. An unfavourable outcome for Greece in the coming weeks could prompt some safe haven demand for the yen, but safe haven flows are unlikely to materialize in the week ahead."
Key Quotes:
"Extending its decline over the last month or so. The yen has even underperformed the US dollar over this period lifting USD/JPY towards its highest level since March. The next key resistance level is at 122.00 which if broken would open the door to another leg higher for the pair reinforcing our confidence that the US dollar has more broadly formed a near-term bottom."
"Speculative short yen positions have been cut back sharply. Speculative yen selling would likely intensify again if USD/JPY broke higher."
"The BoJ is not expected to ease monetary policy further at tomorrow’s meeting and as such is unlikely to provide a fresh trigger for yen selling. Economic growth in Japan strengthened in Q1 as both personal consumption and business investment accelerated."
"However it was flattered by a large inventory build which is likely to see growth slow in Q2. An unfavourable outcome for Greece in the coming weeks could prompt some safe haven demand for the yen, but safe haven flows are unlikely to materialize in the week ahead."