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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY
Yesterday's rally in USD/JPY allowed the rate to break out of its short-term downtrend and complete a bull flag pattern. Topside momentum emerged in Asia-Pac hours amid recovery in risk appetite and speculation that Gotobi flows could be sapping strength from the yen. The rate continued to power ahead later in the day, punching through the Y109.00 figure.
- Tokyo CPI metrics fell roughly in line with expectations, with core CPI printing at -0.1% Y/Y vs. -0.3% prior, as the state of emergency in the capital ended.
- Sankei reported that the central gov't is not planning to resume its Go-To Travel campaign at least until Jun, but may offer travel vouchers for local use from Apr 1.
- USD/JPY trades flat at Y109.19 as we type, with both sides of the pair struggling vs. the rest of the G10 pack. Bulls would be pleased by a clearance of Mar 15 high of Y109.36, which would give them a green light for targeting the 76.4% of the Mar 2020 - Jan 2021 slide at Y109.56. Bears look for a dip through Mar 10 low/20-EMA at Y108.34/28.
- Looking ahead, Japanese highlights next week include unemployment & retail sales (Tuesday), flash industrial output & housing starts (Wednesday) as well as Tankan Survey & final Jibun Bank M'fing PMI (Thursday).
Fig. 1: Bull Flag Pattern
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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