7 Aug 2013
Flash: USD/JPY below 97 after failing to hold key 100 level - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the yen has continued to strengthen in the Asian trading session with USD/JPY falling back towards the 97.00-level after another failed attempt to hold above the 100-00 level.
Key Quotes
“Upward momentum for USD/JPY has faded in recent months with the pair stabilizing between 95.00 and 105.00 since the BoJ adopted QQE in April.”
“The lack of upward momentum is likely a reflection that the current negative impact of Abenomics is now fully discounted, and that yen undervaluation is becoming more restrictive.”
“The lack of renewed upward momentum is likely encouraging some lightening of short yen positioning resulting in the yen strengthening modestly.”
“The BoJ is not expected to unveil any further monetary easing measures this year which could trigger renewed yen selling.”
“However, the BoJ may announce additional easing in the first half of next year if the Japanese economic recovery loses momentum resulting from the planned 3 percentage point sales tax hike that is due to hit the economy from April.”
Key Quotes
“Upward momentum for USD/JPY has faded in recent months with the pair stabilizing between 95.00 and 105.00 since the BoJ adopted QQE in April.”
“The lack of upward momentum is likely a reflection that the current negative impact of Abenomics is now fully discounted, and that yen undervaluation is becoming more restrictive.”
“The lack of renewed upward momentum is likely encouraging some lightening of short yen positioning resulting in the yen strengthening modestly.”
“The BoJ is not expected to unveil any further monetary easing measures this year which could trigger renewed yen selling.”
“However, the BoJ may announce additional easing in the first half of next year if the Japanese economic recovery loses momentum resulting from the planned 3 percentage point sales tax hike that is due to hit the economy from April.”