9 Jul 2015
USD/JPY: Broad-based dollar rally required to move higher in range – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team reviews the Japanese data releases today, and further notes that USD/JPY remains in its 120-125 range, awaiting a USD catalyst to move higher.
Key Quotes
“In Japan, May machine orders and June machine tool orders both rose quite smartly, by 19.3% y/y and 6.6% y/y, respectively. Elsewhere, Economy Minister Amari noted that the excessively strong yen has been corrected, and that Japan hasn’t intentionally been guiding the yen lower.”
“For now, it seems that the 120-125 range remains intact and Japan officials seem quite content.”
“However, if the broad-based dollar rally continues as we expect, we will move into a higher range for dollar/yen eventually.”
Key Quotes
“In Japan, May machine orders and June machine tool orders both rose quite smartly, by 19.3% y/y and 6.6% y/y, respectively. Elsewhere, Economy Minister Amari noted that the excessively strong yen has been corrected, and that Japan hasn’t intentionally been guiding the yen lower.”
“For now, it seems that the 120-125 range remains intact and Japan officials seem quite content.”
“However, if the broad-based dollar rally continues as we expect, we will move into a higher range for dollar/yen eventually.”