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31 Mar 2014
JPY down and awaits tomorrow’s impact– Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained JPY is down 0.4% since Friday’s NA close and traders are concerned for the tax rise tomorrow.
Key Quotes
"JPY is down 0.4% since Friday’s NA close as fundamental data is weaker than expected increasing concern over the impact of the implementation of the higher sales tax tomorrow (from 5% to 8%). News reports suggest there has been a surge in retail spending leading into tomorrow’s hike; however if the economy was already slowing leading into April, industrial production dropped –2.3%m/m and rose a muted 6.9%y/y in February, it warns that the impact of the higher sales tax will be painful and likely met with action from the BoJ."
"Tomorrow’s Tankan is an important risk for USD/JPY. We expect USD/JPY to trend higher into year‐end and hold a target of 109."
Key Quotes
"JPY is down 0.4% since Friday’s NA close as fundamental data is weaker than expected increasing concern over the impact of the implementation of the higher sales tax tomorrow (from 5% to 8%). News reports suggest there has been a surge in retail spending leading into tomorrow’s hike; however if the economy was already slowing leading into April, industrial production dropped –2.3%m/m and rose a muted 6.9%y/y in February, it warns that the impact of the higher sales tax will be painful and likely met with action from the BoJ."
"Tomorrow’s Tankan is an important risk for USD/JPY. We expect USD/JPY to trend higher into year‐end and hold a target of 109."