17 Mar 2015
USD/JPY consolidates in a narrow range – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that short-term technicals for USD/JPY remains bullish as the pair consolidates in a tight range after BoJ highlights CPI risks.
Key Quotes
“JPY is flat following the BoJ’s policy decision to maintain the pace of QE at 80trn. The statement tone softened the near term outlook for inflation, and comments from Gov. Kuroda hinted to the risk of a temporary ‘dip’ into deflation.”
“Domestic data have shown signs of improvement, with both leading and coincident indicators rising—the latter reaching its highest level since March 2014 to fully recover the consumption tax hike decline.”
“Near term risk centers on trade (7:50pm EST) as well as the broader tone heading into Wednesday’s Fed events.”
“USDJPY short-term technicals: bullish—signals are broadly bullish, however we note the increasingly tightened range in USDJPY following the March 12 hammer doji.”
“Support is expected at the 9 day MA (121.12) and we await a break above the March 10 high near 122.00.”
Key Quotes
“JPY is flat following the BoJ’s policy decision to maintain the pace of QE at 80trn. The statement tone softened the near term outlook for inflation, and comments from Gov. Kuroda hinted to the risk of a temporary ‘dip’ into deflation.”
“Domestic data have shown signs of improvement, with both leading and coincident indicators rising—the latter reaching its highest level since March 2014 to fully recover the consumption tax hike decline.”
“Near term risk centers on trade (7:50pm EST) as well as the broader tone heading into Wednesday’s Fed events.”
“USDJPY short-term technicals: bullish—signals are broadly bullish, however we note the increasingly tightened range in USDJPY following the March 12 hammer doji.”
“Support is expected at the 9 day MA (121.12) and we await a break above the March 10 high near 122.00.”