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30 Jun 2014
USD/JPY waiting for US Payrolls - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, sees Friday's US Payrolls as key for the USD/JPY.
Key Quotes
"The US jobs data may prove particularly important for USD/JPY this week given the continued gradual decline toward key support levels. 100.82 was the intra-day low recorded in May which was just above the 100.76 low recorded in February and a breach of these levels this week would open up a quick drop to test the key psychological 100.00 level."
"There appears little the Japanese authorities can do about this right now. The authorities continue to emphasise the progress on structural reform and indeed PM Abe is in the FT today stressing the progress being made in regard to the “third arrow” of Abenomics."
"We certainly maintain that any drop in USD/JPY below the 100-level would be temporary. The GPIF reform details are likely to be announced soon and as much as 15% of the USD 1.2trn fund will be re-allocated out of JGBs and into riskier assets, including foreign securities. While this will be done gradually, it should help support USD/JPY once the shift is under way."
Key Quotes
"The US jobs data may prove particularly important for USD/JPY this week given the continued gradual decline toward key support levels. 100.82 was the intra-day low recorded in May which was just above the 100.76 low recorded in February and a breach of these levels this week would open up a quick drop to test the key psychological 100.00 level."
"There appears little the Japanese authorities can do about this right now. The authorities continue to emphasise the progress on structural reform and indeed PM Abe is in the FT today stressing the progress being made in regard to the “third arrow” of Abenomics."
"We certainly maintain that any drop in USD/JPY below the 100-level would be temporary. The GPIF reform details are likely to be announced soon and as much as 15% of the USD 1.2trn fund will be re-allocated out of JGBs and into riskier assets, including foreign securities. While this will be done gradually, it should help support USD/JPY once the shift is under way."