5 Jun 2015
USD/JPY: Upward pressures building
FXStreet (Guatemala) - Analysts at the Bank of Tokyo-Mitsubishi UFJ, Ltd. noted that USD/JPY broke higher over the last week rising to its highest level since late 2002.
Key Quotes:
"The intra-day high from the 5th December 2002 is located at 125.73 and provides the next key resistance level in the near-term. The weakening of the yen is prompting speculation that Japanese policymakers may act to dampen the pace of yen weakness. Comments from Japanese policymakers so far do not suggest that they are overly concerned yet by the yen’s recent slide.:
"BoJ board member Harada stated today that the weak yen is an overall positive for Japan’s economy and that the yen may be at a “very good place” now. If the pace of the yen’s slide was to accelerate further it would increase the likelihood of verbal jawboning."
"The recent improvement in Japan’s current account balance may also help to dampen yen weakness in the near-term. However, upward pressure on USD/JPY is building alongside evidence that the US economy is returning to more solid growth. The latest non-farm payrolls and retail sales reports are likely to provide support for the US dollar."
Key Quotes:
"The intra-day high from the 5th December 2002 is located at 125.73 and provides the next key resistance level in the near-term. The weakening of the yen is prompting speculation that Japanese policymakers may act to dampen the pace of yen weakness. Comments from Japanese policymakers so far do not suggest that they are overly concerned yet by the yen’s recent slide.:
"BoJ board member Harada stated today that the weak yen is an overall positive for Japan’s economy and that the yen may be at a “very good place” now. If the pace of the yen’s slide was to accelerate further it would increase the likelihood of verbal jawboning."
"The recent improvement in Japan’s current account balance may also help to dampen yen weakness in the near-term. However, upward pressure on USD/JPY is building alongside evidence that the US economy is returning to more solid growth. The latest non-farm payrolls and retail sales reports are likely to provide support for the US dollar."