The Japanese Yen (JPY) is entering Friday’s NA session flat from Thursday’s close, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
JPY remains unchanged on the day
“The overnight range was remarkably tight, with no material reaction to the release of weaker than expected industrial production and retail sales data for July. Tokyo CPI data met expectations, at 2.5% y/y on headline while the narrower (ex-food, energy) CPI printed 3.0% y/y.”
“The outlook for relative central bank policy remains a core component of our bullish JPY view, as we look to renewed hawkishness from the BoJ and an intensification of dovishness from the Fed. Narrower US-Japan yield spreads reflect this, opening up a divergence to USD/JPY.”
“We are bearish USD/JPY, looking to a break of recent trend support offered by the 50 day MA (147.01) and anticipate a push to the lower end of the recent range ~142.00.”
