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30 Jan 2015
USD/JPY to break higher out of recent range? - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that the Yen is stuck in familiar ranges.
Key Quotes:
"USD/JPY continues to trade within its 9‐session range of 117.18 to 118.87, as inflationary pressures trend lower. National CPI came in at 2.4%, with ex fresh food falling to 2.5% and ex food and energy stable at 2.1%; removing the impact of the consumption tax leaves CPI."
"In addition overall household spending dropped –3.4%, while industrial production disappointed rising just 1.0%m/m; however the jobless rate fell to 3.4%. For USD/JPY the bar for further BoJ action is likely high; however as CPI trends lower and is complicated by oil prices there are building risks. In the near‐term USD/JPY is likely limited by its recent range; however by year‐end we would expect a substantially higher USD/JPY."
Key Quotes:
"USD/JPY continues to trade within its 9‐session range of 117.18 to 118.87, as inflationary pressures trend lower. National CPI came in at 2.4%, with ex fresh food falling to 2.5% and ex food and energy stable at 2.1%; removing the impact of the consumption tax leaves CPI."
"In addition overall household spending dropped –3.4%, while industrial production disappointed rising just 1.0%m/m; however the jobless rate fell to 3.4%. For USD/JPY the bar for further BoJ action is likely high; however as CPI trends lower and is complicated by oil prices there are building risks. In the near‐term USD/JPY is likely limited by its recent range; however by year‐end we would expect a substantially higher USD/JPY."