26 Mar 2014
USD/JPY well supported at 102.00
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, suggested the USD/JPY would find bids near 102.00...
Key Quotes
"The key is to ensure more favourable economic and financial market conditions prevail in Q4 as PM Abe has stated that a decision on the second tax increase from 8% to 10% in October 2015 will be taken in December. Given the government wants to proceed with that there will be political pressure to take whatever action is required in order to ensure favourable conditions prevail."
"Q3 GDP data will be important as it will become available in November and hence BOJ easing is more likely in early Q3 in order to ensure a decent recovery from the expected contraction in Q2. Certainly though the comments from Governor Kuroda last week in London didn’t indicate that the BOJ would be taking action any time soon."
"The BOJ will also be encouraged by a survey by the Nikkei over the weekend which found that 40% of business leaders described the last-minute demand ahead of the sales tax increase as “within the scope of expectations” while 25.7% saw no “out-of-the ordinary” demand. We expect the yen to remain broadly stable versus the dollar for now with good demand on any dips below the 102.00 level."
Key Quotes
"The key is to ensure more favourable economic and financial market conditions prevail in Q4 as PM Abe has stated that a decision on the second tax increase from 8% to 10% in October 2015 will be taken in December. Given the government wants to proceed with that there will be political pressure to take whatever action is required in order to ensure favourable conditions prevail."
"Q3 GDP data will be important as it will become available in November and hence BOJ easing is more likely in early Q3 in order to ensure a decent recovery from the expected contraction in Q2. Certainly though the comments from Governor Kuroda last week in London didn’t indicate that the BOJ would be taking action any time soon."
"The BOJ will also be encouraged by a survey by the Nikkei over the weekend which found that 40% of business leaders described the last-minute demand ahead of the sales tax increase as “within the scope of expectations” while 25.7% saw no “out-of-the ordinary” demand. We expect the yen to remain broadly stable versus the dollar for now with good demand on any dips below the 102.00 level."