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12 Jun 2013
Flash: The Bank of Japan left policy on hold - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the BoJ left policy on hold, resisting the temptation to react to market volatility.
He comments that they raised the economic assessment for a 6th month in a row, the yen firmed, the Nikkei slipped and JGB yields rose marginally. He feels that USD/JPY needs to find a new range off which to build a base for the next leg higher in this move. He writes, “A re-test of 95 is possible as stops are triggered (again). Being bullish USD/JPY in the face of EMFX mayhem and interest rate volatility seems foolish, so for all my long-term conviction in this trade, I still think it is virtually untradeable in the short term. As are NKY and JGBs.”
He comments that they raised the economic assessment for a 6th month in a row, the yen firmed, the Nikkei slipped and JGB yields rose marginally. He feels that USD/JPY needs to find a new range off which to build a base for the next leg higher in this move. He writes, “A re-test of 95 is possible as stops are triggered (again). Being bullish USD/JPY in the face of EMFX mayhem and interest rate volatility seems foolish, so for all my long-term conviction in this trade, I still think it is virtually untradeable in the short term. As are NKY and JGBs.”