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HISTORICAL DETAILS
% Change
1 Wk -1.87%
1 Month -1.05%
3 Months -4.91%
6 Months -4.34%
1 Year -10.40%
52 WEEK
High 89.16
Low 76.25
BLOOMBERG MEDIAN FORECASTS
Q2 2011 83.00
Q3 2011 83.00
Q4 2011 85.00
Q1 2012 87.00
DAILY DETAIL
USD/JPY came under significant selling pressure in late US trade, pushing down to 78.50 (the lowest level since March 17). This occurred before it rebounded back above 79.00 on speculation that the BoJ could intervene at any stage. The key catalyst behind the move was commentary from the FOMC minutes in which the Federal Reserve cited concerns over the debt ceiling, while also failing to show any cohesion on its views on domestic growth. Interestingly, and perhaps the part to which has put a bid under precious metals, was that some members felt further stimulus may be warranted should conditions deteriorate further. We feel that the bar is still elevated, and that inflation expectations, as measured by the bond market, are still well above where they were last August. We will need to see another couple of months of sustained deterioration in data, mixed with increasing fears of a sovereign default before Ben Bernanke commits to a renewed round of asset purchases. USD/JPY looks set for a short-term breather after its big move, but will be in focus tonight as Mr Bernanke is set to deliver his semi-annual testimony on policy. Chris Weston, Australia
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