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27 Feb 2014
Flash: USD/JPY now faces critical Japanese CPI - Scotiabank
FXStreet (Barcelona) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank said, "JPY is strong but tomorrow’s CPI release is important for judging the BoJ success and any possible further action in the spring (our base case)."
Key Quotes
"Consensus expects Japanese CPI to fall to 1.3% on headline and remain stable at 1.3% ex fresh food; while Tokyo’s inflationary pressures are expected to rise. We expect USD/JPY to shift lower as risk aversion bubbles; but to rally in the spring as the BoJ turns to more aggressive policy."
"USD/JPY short‐term technicals: mixed and suggest a relatively range bound environment. Near‐term support lies at the recent low of 100.76 while support lies at the recent high of 102.83."
Key Quotes
"Consensus expects Japanese CPI to fall to 1.3% on headline and remain stable at 1.3% ex fresh food; while Tokyo’s inflationary pressures are expected to rise. We expect USD/JPY to shift lower as risk aversion bubbles; but to rally in the spring as the BoJ turns to more aggressive policy."
"USD/JPY short‐term technicals: mixed and suggest a relatively range bound environment. Near‐term support lies at the recent low of 100.76 while support lies at the recent high of 102.83."