28 Nov 2014
USD/JPY to move higher - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes the current conditions surrounding the Yen and expects the USD/JPY to move higher in time.
Key Quotes:
“The October data set was mixed for Japan, national CPI disappointed falling to 2.9%y/y, with CPI ex fresh food at 2.9%y/y and ex food and energy at 2.2%y/y; while industrial production and employment was firmer than expected but retail sales were soft.
"Lower oil prices is positive for Japan in terms of growth, but the drag to inflation will prove a concern for the BoJ”.
“We expect USD/JPY to continue to trend higher over time."
"USD/JPY short‐term technicals: mixed—warning of a range bound environment with support at the recent low of 117.24 and resistance at the high of 117.88."
Key Quotes:
“The October data set was mixed for Japan, national CPI disappointed falling to 2.9%y/y, with CPI ex fresh food at 2.9%y/y and ex food and energy at 2.2%y/y; while industrial production and employment was firmer than expected but retail sales were soft.
"Lower oil prices is positive for Japan in terms of growth, but the drag to inflation will prove a concern for the BoJ”.
“We expect USD/JPY to continue to trend higher over time."
"USD/JPY short‐term technicals: mixed—warning of a range bound environment with support at the recent low of 117.24 and resistance at the high of 117.88."