1 Dec 2014
USD/JPY looks to test 120 level- DBS
FXStreet (Barcelona) - The DBS Research team notes that the USD/JPY pair closed last week at 118.61, highest since August 2007, and looks to test the psychological 120 level.
Key Quotes
“Japan is scheduled to hold its snap elections on 14 December. Wary that further yen depreciation is now viewed as negative for Japanese households and small firms, Finance Minister Taro Aso has been seeking to tone down the currency’s fall. While he warned that the depreciation pace had been too fast of late, Aso also indicated no need for intervention.”
“For now, consensus does not expect the election to vote out PM Shinzo Abe and his policy of Abenomics. USD/JPY closed last week at 118.61, its highest level since August 2007, and looks set to test the psychological 120 level. At these levels, the yen’s weakness has also spilled negatively into its Asia ex Japan counterparts.”
Key Quotes
“Japan is scheduled to hold its snap elections on 14 December. Wary that further yen depreciation is now viewed as negative for Japanese households and small firms, Finance Minister Taro Aso has been seeking to tone down the currency’s fall. While he warned that the depreciation pace had been too fast of late, Aso also indicated no need for intervention.”
“For now, consensus does not expect the election to vote out PM Shinzo Abe and his policy of Abenomics. USD/JPY closed last week at 118.61, its highest level since August 2007, and looks set to test the psychological 120 level. At these levels, the yen’s weakness has also spilled negatively into its Asia ex Japan counterparts.”