Back
21 May 2014
JPY extends its upside momentum - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underlines the current strength of the Japanese currency.
Key Quotes
"The yen has continued to strengthen in the Asian trading session with USD/JPY breaking below support from its 200-day moving average which came in at 101.29. The yen has been supported overnight by both more risk averse trading conditions and the reduced likelihood of further BoJ monetary easing in the near-term."
"The BoJ left its monetary policy stance unchanged at today’s meeting remaining committed to increasing its monetary base at an annual pace of about JPY60-70 trillion. The BoJ acknowledged that the subsequent decline in demand following the consumption tax has been observed although reiterated that Japan’s economy has continued to recover as a trend."
"The BoJ offered no opinion in today’s statement about whether they thought the economy was performing as expected so far during Q2 following the sales tax hike. The BoJ also acknowledged that “business fixed investment has increased moderately” as corporate profits have improved which is a modest upgrade from previous assessment that “the pickup in business fixed investment has become increasingly evident”."
"It follows stronger than expected capital investment in Q1. The BoJ’s outlook for inflation remained unchanged. At the margin today’s BoJ policy statement which acknowledged the improvement in business fixed investment reduces the likelihood of further BoJ monetary easing in the near-term providing support for the yen in the near-term."
Key Quotes
"The yen has continued to strengthen in the Asian trading session with USD/JPY breaking below support from its 200-day moving average which came in at 101.29. The yen has been supported overnight by both more risk averse trading conditions and the reduced likelihood of further BoJ monetary easing in the near-term."
"The BoJ left its monetary policy stance unchanged at today’s meeting remaining committed to increasing its monetary base at an annual pace of about JPY60-70 trillion. The BoJ acknowledged that the subsequent decline in demand following the consumption tax has been observed although reiterated that Japan’s economy has continued to recover as a trend."
"The BoJ offered no opinion in today’s statement about whether they thought the economy was performing as expected so far during Q2 following the sales tax hike. The BoJ also acknowledged that “business fixed investment has increased moderately” as corporate profits have improved which is a modest upgrade from previous assessment that “the pickup in business fixed investment has become increasingly evident”."
"It follows stronger than expected capital investment in Q1. The BoJ’s outlook for inflation remained unchanged. At the margin today’s BoJ policy statement which acknowledged the improvement in business fixed investment reduces the likelihood of further BoJ monetary easing in the near-term providing support for the yen in the near-term."