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1 Apr 2015
USD/JPY near-term support at 119.22 – OCBC
FXStreet (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank, notes that the recent soft Japanese data leaves JPY vulnerable, further expecting 119.22 to support any near-term dips for USD/JPY.
Key Quotes
“Japan’s headline 1Q Tankan reading came in softer than expected and unchanged this morning at 12 (mkts: 14) with large manufactures expecting the index to deteriorate further to 10 in June.”
“Note also large firms revised lower their capex growth plans to +8.2% from 8.7% previously.”
“Although these numbers continue to argue for structural JPY vulnerability, Nikkei softness may imply a heavy intra-day profile, with the 55-day MA (119.22) likely to support on near term dips.”
Key Quotes
“Japan’s headline 1Q Tankan reading came in softer than expected and unchanged this morning at 12 (mkts: 14) with large manufactures expecting the index to deteriorate further to 10 in June.”
“Note also large firms revised lower their capex growth plans to +8.2% from 8.7% previously.”
“Although these numbers continue to argue for structural JPY vulnerability, Nikkei softness may imply a heavy intra-day profile, with the 55-day MA (119.22) likely to support on near term dips.”