USD/JPY Performance Chart as at 1:00 p.m. Singapore time, 8/06/11

Forex Focus is brought to you by IG Markets - Forex Trading

 

  

 

HISTORICAL DETAILS 

% Change

1 Wk -1.22%

1 Month -0.50%

3 Months -3.64%

6 Months -4.85%

1 Year -12.49%

 

52 WEEK

High 92.12

Low 76.25

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 83.00

Q3 2011 85.00

Q4 2011 87.00

Q1 2011 88.00

 

DAILY DETAIL

The USD/JPY traded down to 79.98 overnight for the second time in two sessions, after Ben Bernanke gave a pessimistic view on the US economy. His comments, although expected, clearly voiced his displeasure with the labour market and said the economy is producing well below potential. Anyone positioned for hints of a fresh round of asset buying (QE3) was forced to change their approach after Dr Bernanke gave no insights here. In fact, given he views deflation as the key to further asset purchases (and with the Federal Reserve seemingly winning that battle), there is little possibility of that happening anytime soon. In early Asian trade there were reports of exporters and retail buyers of the USD/JPY, although this did not last long; around 11pm (Melbourne time) the JPY strengthened across the board, subsequently pushing the USD/JPY to a low of 79.74. Data out of Japan caused little reaction, even though its current account dropped a massive 69.5% to Y405.6 billion, its smallest surplus in the month of April. Tomorrow’s GDP print in Japan will be interesting, with economists expecting last month’s shocker (a 3.7% drop) to be revised to a slightly less severe 3.1% decline. A close below support at 79.79 could indicate further downside. Chris Weston, Australia.