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16 May 2014
USD/JPY remains well underpinned - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, suggested the current consolidation pattern could extend in the near term.
Key Quotes
"The yen remains well underpinned at present and we see little chance of that changing over the very near-term. Yields are falling in all the other major economies at present while the GDP data yesterday will at least for the time being reinforce the building view that the BOJ will not aggressively ease its monetary policy stance further."
"We still believe further action is probable but for now with Governor Kuroda expressing confidence in reaching the 2% inflation target, expectations are receding. The danger over the coming weeks is that European data indicates that the ECB is further behind the curve than initially thought, which could prompt a more pronounced shift out of risk assets."
"The notable move yesterday was the substantial widening of periphery sovereign debt yields over Bunds that could be the first indication that periphery bond prices may have become stretched. If risk aversion intensifies it will only add to downward pressure on USD/JPY over the coming weeks."
Key Quotes
"The yen remains well underpinned at present and we see little chance of that changing over the very near-term. Yields are falling in all the other major economies at present while the GDP data yesterday will at least for the time being reinforce the building view that the BOJ will not aggressively ease its monetary policy stance further."
"We still believe further action is probable but for now with Governor Kuroda expressing confidence in reaching the 2% inflation target, expectations are receding. The danger over the coming weeks is that European data indicates that the ECB is further behind the curve than initially thought, which could prompt a more pronounced shift out of risk assets."
"The notable move yesterday was the substantial widening of periphery sovereign debt yields over Bunds that could be the first indication that periphery bond prices may have become stretched. If risk aversion intensifies it will only add to downward pressure on USD/JPY over the coming weeks."