Intra-Day Market Moving News and Views USD/JPY

Intra-Day Market Moving News and Views

26 Sep 2014 08:42GMT

USD/JPY - ...... Despite the greenback's initial weakness to 108.48 in Australia, renewed buying emerged there n pushed the pair higher. Dlr rose to 109.11 ahead of Asian open, n then higher to 109.16 in Asian morning on comments from Japan's Shiozaki. However, price pared its gains and retreated briefly but sharply to 108.85 b4 rebounding again in Europe.

Japan Welfare minister Shiozaki said he has no intention to put off reforms for the Gov't Pension Ivestment Fund (GPIF).
Reform of this fund is expected to result in more investment being channeled into Japanese equities n overseas assets, thus causing weakness in yen.

Bids are now seen at 108.80/90 n more below at 108.50/60 with stops building up below there whilst initial offers are noted at 109.40/50, suggesting buying on dips is still favored.

Earlier this morning, despite extending previous day's gain to 109.34 ahead of Tokyo open on Thur, then a marginal rise to 109.37 at European open, the pair fell sharply below 109.00 level in Thur's NY morning on risk aversion due to decline in U.S. n European stock markets together with news of Japan's health minister Shiozaki who said no hurry to reform GPIF.
Price tanked to 108.51 n then briefly recovered to 108.88 b4 edging lower in NY afternoon. Dollar fell briefly to 108.47/48 in Tokyo morning but rebounded to 109.11 as Nikkei pared initial losses after a 286 points 'gap-down' opening.

Although yesterday's intra-day sell off fm 109.37 to 108.51 indicates choppy trading below last Fri's 6-year peak of 109.46 wud contniue as investors are reluctant to add bets ahead of the release of U.S. GDP data (even though it is a final reading) n consumer sentiment report later today, range trading abv this week's low at 108.26 (Tue) shud continue in Asia n early Europe.
Offers are noted at 108.75/80, 108.95/00 n around 109.20, whilst bids are placed at 108.35/30 n then 108.20 with mixture of bids n stops located just below 108.00.

On the data front, economists estimate the U.S. Q2 real GDP is likely revised higher to 4.6%, while no significant revisions are expected for the GDP price index n core PCE deflator in Q2.
Later, University of Michigan will release report for consumer sentiment in Sept n market expects the final Sept sentiment index to come in higher at 84.7 than the preliminary report.