USD/JPY: Markets eye stronger services PMI into July 31 BoJ – Scotiabank
|The Japanese Yen (JPY) is entering Thursday’s NA session unchanged against the US Dollar (USD), having faded its early Asian session gains driven by the release of a mixed set of PMI’s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
JPY flat on the daily chart
"Markets clearly celebrated the data with a specific focus on the surprise in services (53.5 vs. 51.7 prev.) as they ignored the weaker manufacturing (48.8 vs. 50.1 prev.) print.
"The data should provide additional confidence to policymakers at the BoJ as they look to resume their policy tightening following the successful conclusion of US/Japan trade talks and the passing of last weekend’s upper house election. Interest rate differentials are offering the JPY support, as we note a continued narrowing in US-Japan spreads."
"We look to near-term strength in the JPY as we approach the July 31 BoJ meeting. For USD/JPY, we look to near-term weakness and a decline toward the lower end of the recent range, at 142.00."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.