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20 Apr 2015
Japan leaves economic assessment unchanged, going short on USD/JPY – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team comments on the key developments in the Japanese market, and further maintains a bearish outlook on USD/JPY, targeting 117.20 levels.
Key Quotes
“Japan's government kept its overall assessment of the economy unchanged on Monday, noting a moderate recovery trend as factory output is picking up on the back of improving corporate activity. In its monthly economic report, the government also kept unchanged its assessment of consumer spending, capital expenditure and exports, as the economy stabilises after a recession unexpectedly caused by a sales tax hike last April.”
“The report comes ahead of a closely watched Bank of Japan meeting on April 30 where the central bank will update its forecasts for consumer prices and inflation.”
“Bank of Japan Governor Haruhiko Kuroda said on Sunday that financial markets could be surprised if the central bank hits its 2% inflation target in 2016 and interest rates in Japan start to rise as a result.”
“Kuroda said the BOJ expects inflation in Japan to gradually accelerate later this year as the impact of lower oil prices becomes less of a factor in the data.”
“The monthly Tankan survey showed that confidence among Japanese manufacturers slid for the first time in three months in April. Sentiment index for manufacturers fell to 12 in April from 16 in the prior month. However, the service-sector index rose to 25 from 21 in March, led by sectors such as retailers, real estate, construction and information, communications.”
“We are looking to go short on the USD/JPY at 119.35. If the order is filled, the target will be 117.20.”
“Resistance: 119.26 (high Apr 17), 119.48 (high Apr 16), 119.62 (21-dma)”
“Support: 118.53 (session low Apr 20), 118.33 (low Mar 26), 118.30 (low Feb 20)”
Key Quotes
“Japan's government kept its overall assessment of the economy unchanged on Monday, noting a moderate recovery trend as factory output is picking up on the back of improving corporate activity. In its monthly economic report, the government also kept unchanged its assessment of consumer spending, capital expenditure and exports, as the economy stabilises after a recession unexpectedly caused by a sales tax hike last April.”
“The report comes ahead of a closely watched Bank of Japan meeting on April 30 where the central bank will update its forecasts for consumer prices and inflation.”
“Bank of Japan Governor Haruhiko Kuroda said on Sunday that financial markets could be surprised if the central bank hits its 2% inflation target in 2016 and interest rates in Japan start to rise as a result.”
“Kuroda said the BOJ expects inflation in Japan to gradually accelerate later this year as the impact of lower oil prices becomes less of a factor in the data.”
“The monthly Tankan survey showed that confidence among Japanese manufacturers slid for the first time in three months in April. Sentiment index for manufacturers fell to 12 in April from 16 in the prior month. However, the service-sector index rose to 25 from 21 in March, led by sectors such as retailers, real estate, construction and information, communications.”
“We are looking to go short on the USD/JPY at 119.35. If the order is filled, the target will be 117.20.”
“Resistance: 119.26 (high Apr 17), 119.48 (high Apr 16), 119.62 (21-dma)”
“Support: 118.53 (session low Apr 20), 118.33 (low Mar 26), 118.30 (low Feb 20)”