1 Jul 2015
USD/JPY: fade the upticks – OCBC
FXStreet (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank, comments on the key data releases in the Japanese market, and further suggests fading any USD/JPY upticks.
Key Quotes
“While the latest Tankan readings are mildly supportive (improving but by less than expected for the most part), capex plans improving by a more than expected degree to +9.3% yoy from -1.2% previously should prove positive for macro sentiment.”
“On the currency front, large manufacturers’ average FY forecast for the USD-JPY also rose to 115.62 from 111.81 previously.”
“Elsewhere, the June Nikkei manufacturing PMI also climbed to 50.1 (49.9 prev). Despite this, USD-JPY however may however remain responsive to risk/broad dollar cues in the near term.”
“We prefer to fade upticks in the current environment with the 122.00 support still conspicuous ahead of the 55-day MA (121.69).”
Key Quotes
“While the latest Tankan readings are mildly supportive (improving but by less than expected for the most part), capex plans improving by a more than expected degree to +9.3% yoy from -1.2% previously should prove positive for macro sentiment.”
“On the currency front, large manufacturers’ average FY forecast for the USD-JPY also rose to 115.62 from 111.81 previously.”
“Elsewhere, the June Nikkei manufacturing PMI also climbed to 50.1 (49.9 prev). Despite this, USD-JPY however may however remain responsive to risk/broad dollar cues in the near term.”
“We prefer to fade upticks in the current environment with the 122.00 support still conspicuous ahead of the 55-day MA (121.69).”