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27 Nov 2014
USD/JPY –Bearish Bias – (116.00-119.00) - BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ explained that the US dollar is proving more sensitive to weaker than expected US economic data releases in the near-term which is helping to dampen USD/JPY upward momentum.
Key Quotes:
“The weakness in commodity prices has extended after OPEC maintained production levels which is weighing on the US dollar by pushing back Fed rate hike expectations”.
“The ongoing decline in market-based measures of US inflation expectations may draw greater concern from the Fed”.
“The pace of the yen’s decline has also drawn concern from Japanese officials which is helping to stabilize USD/JPY at higher levels”.
“USD/JPY has recorded it largest monthly increase since early 2009 after the BoJ accelerated monetary easing at the end of last month Political comments regarding the negative economic impact of the weak yen may become more frequent heading into the snap election in Japan providing some support for the yen”.
“Investor concern may also build heading to the election that the government may lose more seats than expected undermining confidence in Abenomics which could trigger a stronger yen".
Key Quotes:
“The weakness in commodity prices has extended after OPEC maintained production levels which is weighing on the US dollar by pushing back Fed rate hike expectations”.
“The ongoing decline in market-based measures of US inflation expectations may draw greater concern from the Fed”.
“The pace of the yen’s decline has also drawn concern from Japanese officials which is helping to stabilize USD/JPY at higher levels”.
“USD/JPY has recorded it largest monthly increase since early 2009 after the BoJ accelerated monetary easing at the end of last month Political comments regarding the negative economic impact of the weak yen may become more frequent heading into the snap election in Japan providing some support for the yen”.
“Investor concern may also build heading to the election that the government may lose more seats than expected undermining confidence in Abenomics which could trigger a stronger yen".