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HISTORICAL DETAILS
% Change
1 Wk -0.57%
1 Month -1.90%
3 Months -3.90%
6 Months -5.20%
1 Year -10.08%
52 WEEK
High 88.12
Low 76.25
BLOOMBERG MEDIAN FORECASTS
Q2 2011 83.00
Q3 2011 83.00
Q4 2011 85.00
Q1 2012 87.50
DAILY DETAIL
Overnight, USD/JPY traded as low as 78.71, as any signs of a quick resolution on the debt ceiling debate diminished. It seems that further meetings are being held behind the scenes and there is strong hope that the ‘Gang of Six’ proposal can find some real support, but the need for action is paramount as time is running out. US President Barack Obama’s imposed deadline of July 22 is fast approaching, and traders will be watching this closely as it takes a number of days to pass any legislative changes before August 2. The pair is continuing to trade below 79.00 and again we have heard from Japanese Finance Minister Mr Noda, who expressed his displeasure at the strength of the JPY, that current levels do not reflect the country’s economic fundamentals. Interestingly, we have also recently heard from the head of Japan’s business association that the time for forex intervention is upon us. US data was poor overnight, which also spurred selling from model accounts, as existing home sales missed expectations and fell 0.8%. Japan’s June trade balance was stronger than expected at JPY70.7 billion, however, this caused little reaction from traders. Tonight’s US initial jobless claims will be a central focus for traders, with a consensus from analysts suggesting a slight uptick in claimants to 410,000. A number south of 400,000 could see upside on US yields and spur buying in USD/JPY, although a worse-than-expected number could see the pair go on to test support at 78.44. Chris Weston, Australia
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