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13 Mar 2014
USD/JPY finding bids on positive data
FXStreet (Guatemala) - USD/JPY is ticking up with a high of 102.85bids post the fix and upon positive data realises.
Machinery orders came in yoy 23.6% vs expectations of 18.8% and at the same time we had Foreign Bond Investment coming in as Y618.5B with Foreign Investment in Japan stocks reading as Y383.8B. On Japan, and meanwhile, Jane Foley, Senior Currency Strategist explained that Japan needs to address its fiscal imbalances. Japan need to address its fiscal imbalances. “However the last time the country tried to hike the consumption tax, it found itself plunged into recession. Not only is the consumer facing a large tax hike but there is danger that he is also facing negative real wage changes. This morning’s news that Toyota is giving workers in Japan their biggest pay increase for 21 years is encouraging, but there is still the risk that consumer demand will remain lacklustre post April and this explains why the BoJ have not yet closed the door of the possibility of further policy action”.
USD/JPY Levels
The 20 DMA is 102.37, 50 DMA is 103.00 and the 200 DMA is 100.24. RSI (14) reads 43.40. Supports are 102.24, 102.46, 102.59. Spot is 102.83 while resistances are 103.02, 103.13, 103.43, 103.77 and 104.15.
Machinery orders came in yoy 23.6% vs expectations of 18.8% and at the same time we had Foreign Bond Investment coming in as Y618.5B with Foreign Investment in Japan stocks reading as Y383.8B. On Japan, and meanwhile, Jane Foley, Senior Currency Strategist explained that Japan needs to address its fiscal imbalances. Japan need to address its fiscal imbalances. “However the last time the country tried to hike the consumption tax, it found itself plunged into recession. Not only is the consumer facing a large tax hike but there is danger that he is also facing negative real wage changes. This morning’s news that Toyota is giving workers in Japan their biggest pay increase for 21 years is encouraging, but there is still the risk that consumer demand will remain lacklustre post April and this explains why the BoJ have not yet closed the door of the possibility of further policy action”.
USD/JPY Levels
The 20 DMA is 102.37, 50 DMA is 103.00 and the 200 DMA is 100.24. RSI (14) reads 43.40. Supports are 102.24, 102.46, 102.59. Spot is 102.83 while resistances are 103.02, 103.13, 103.43, 103.77 and 104.15.