Intra-Day Market Moving News and Views USD/JPY

Intra-Day Market Moving News and Views

23 Oct 2014 

USD/JPY - ...... Dlr pares Wed's gain in early Tokyo trading as intra-day retreat in the Nikkei (currently down 102 points at 15093 after yesterday's 2.5% rally) has led to intra-day renewed buying in yen.

Although the pair climbed in NY morning after U.S. CPI ticked higher and touched session high of 107.38, offers at Monday's 107.39 top checked intra-day gain and price edged lower near NY close.
Looks like range trading would continue in Asia, unless the Nikkei falls sharply, re-test of 107.28/39 is on the card.
Bids are noted at 107.00 and more below would stops below 106.80-75.
On the upside, offers are tipped at 107.45/50 with stops above there, however, more selling interest is reported at 107.80/00 area.

A piece of WSJ report worth mentioning. In an interview with the WSJ yesterday, Japan's vice economy minister Yasutoshi Nishimura said the yen is likely to weaken further due to differences of monetary policies in the U.S. and Japan, but further slips wouldn't be bad for the economy as long as the pace is gradual.

Nishimura said "the exchange rate will be decided against a backdrop where the BoJ is continuing easing while the U.S. is moving towards an exit from monetary easing." He added "a gradual weakening in the yen, without any sudden changes, is good for Japan." His comments came as some lawmakers, n even PM Shinzo Abe, have expressed caution in recent weeks about a weakening of the yen against other currencies.

On the subject about sales tax hike, Nishimura said the gov't should also proceed cautiously when deciding whether to raise the national sales tax to 10% fm 8% in Oct 2015. The gov't raised the levy to 8% fm 5% in April, causing a sharp pullback in demand n adding to calls fm ruling party lawmakers to reconsider the timing of a second increase.