10 Apr 2014
USD/JPY may be basing - RBS
FXStreet (Bali) - According to Greg Gibbs, FX Strategist at RBS, USD/JPY may have found a bottom following its sharp fall this week.
Key Quotes
"In light of the weaker USD, the performance of the USD/JPY suggests that it is finding a bottom after its recent falls. As discussed yesterday, JPY should be viewed as the best funding currency and the risk positive mood may see it recover some recent losses."
"Japan machine orders slip 8.8% m/m in Feb, weaker than -2.6% expected, consistent with other forward looking data recently suggesting outlook for the Japan economy is weaker post consumption tax hike. Along with a relatively weak Nikkei, this should keep pressure on the BoJ to do more easing. I prefer to view this as a negative for JPY, though the market could see it as positive if it continues to see the BoJ as loosing its commitment to achieve 2% inflation."
Key Quotes
"In light of the weaker USD, the performance of the USD/JPY suggests that it is finding a bottom after its recent falls. As discussed yesterday, JPY should be viewed as the best funding currency and the risk positive mood may see it recover some recent losses."
"Japan machine orders slip 8.8% m/m in Feb, weaker than -2.6% expected, consistent with other forward looking data recently suggesting outlook for the Japan economy is weaker post consumption tax hike. Along with a relatively weak Nikkei, this should keep pressure on the BoJ to do more easing. I prefer to view this as a negative for JPY, though the market could see it as positive if it continues to see the BoJ as loosing its commitment to achieve 2% inflation."