27 Sep 2013
USD/JPY falling back on Japanese FinMin Aso
FXstreet.com (Athens) – The USD/JPY is losing ground today, after the yesterday’s rally –mostly attributed to 0.50% decline of the Japanese currency, on Japan’s Fin Min Aso comments.
USD/JPY falling apart as FinMin Aso throws a spanner in market’s optimism
The USD/JPY is heading south since the start of the Asian trading session, due to the fact that the Finance Minister of Japan Aso mentioned that he does not consider any kind of cut in corporate taxes, throwing a spanner in market’s optimism. In addition to, Aso rejected by far the comments on behalf of PM Abe yesterday, who clearly stated that there is a high probability of reducing the corporate tax speading “euphoria” all over the globe. What’s more, governor Haruhiko Kuroda may come under increased pressure to implement more non-standard measures especially as the new government remains on track to raise the sales tax for the first time in fifteen years. Finally, Japan’s core consumer inflation rose 0.8 percent hitting a fresh five-year high.
Technical outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “we are still slightly uncomfortable with undue upside for the USD/JPY in the near term despite slightly firmer US yields and Japanese corporate tax headlines. With investor sentiment on edge with respect to the US fiscal situation, the pair may have to overcome resistance around the 99.00 area convincingly to establish a foothold, and failing which, a relapse
back towards the 55-day MA (98.68) cannot be ruled out.”
USD/JPY falling apart as FinMin Aso throws a spanner in market’s optimism
The USD/JPY is heading south since the start of the Asian trading session, due to the fact that the Finance Minister of Japan Aso mentioned that he does not consider any kind of cut in corporate taxes, throwing a spanner in market’s optimism. In addition to, Aso rejected by far the comments on behalf of PM Abe yesterday, who clearly stated that there is a high probability of reducing the corporate tax speading “euphoria” all over the globe. What’s more, governor Haruhiko Kuroda may come under increased pressure to implement more non-standard measures especially as the new government remains on track to raise the sales tax for the first time in fifteen years. Finally, Japan’s core consumer inflation rose 0.8 percent hitting a fresh five-year high.
Technical outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “we are still slightly uncomfortable with undue upside for the USD/JPY in the near term despite slightly firmer US yields and Japanese corporate tax headlines. With investor sentiment on edge with respect to the US fiscal situation, the pair may have to overcome resistance around the 99.00 area convincingly to establish a foothold, and failing which, a relapse
back towards the 55-day MA (98.68) cannot be ruled out.”