Both USDJPY and Gold saw a knee-jerk rally Thursday in response to the announce partnership between Russia and North Korea involving technology transfers to the latter. Over the weekend Vladimir Putin threatened to arm North Korea and allow the latter to re-export such arms to none state actors. This development has put Japanese vulnerability in…
As expected the Bank of Japan decided to keep rates steady Friday with expectations suggesting this stance will continue for quiet some time. That said BoJ Governor Kazuo Ueda has announced it will be trimming it purchase of government bonds over the next two years, not enough of an excuse to see the Yen rally…
The Japanese Yen is again losing ground against the dollar though overall performance has been mixed managing to hold its own with the Euro and slightly weaker with the British Pound. Focus for the day remains to be the FOMC decision later where expectations are for things to remain steady though key here will be…
Having seen a pullback to the 50D Moving Average we could argue that previous carry trades have already been cleared for USDJPY with prospects of a change in the rate differentials nil for the near future. With hourly earnings up 0.4% from 0.2% previously and the May Non-farm Payrolls hugely surprising on the upside to…
The recent pullback among the yen pairs has likely cleared a good number of carry trades allowing us the opportunity to rejoin the game from better prices levels. None there less we do have rate decisions coming from Canada and Europe today and tomorrow with consensus calling for rate cuts suggesting it will be more…
We have long been a fan of the carry trade but after a month of steady gains it is worth reassessing considering the next set of policy meetings beginning next week on Thursday for the ECB. Note that there is increasing expectation of a move by the ECB this time around which with the three…
There has been limited news out of Japan of late with much of the recent swings for USDJPY more about whats happening in the US and consequently the dollar. The latest plunge of the pair has been on weak US economic data of late yet these numbers are not actually enough to convince the Fed…
We will just touch on USDJPY with the start of a fresh week. Note that for us this pair remains to be a carry trade more than anything else though with inflation metrics for the US coming out on Wednesday the potential for price action would be attractive. The formula here remains straight forward inflation…
The Japanese Yen has slowly been losing ground against the other majors even as in theory we actually have a closing rate gap between Japan and the likes of US, UK, and Europe. Absent any structural changes it is difficult for us to see a stronger Yen in the near term. Ultimately the Yen pairs…
Dollar Yen and the Crosses have pulled back sharply over the past week or so easing back to the prior month long consolidation zone. Across the three pairs we have seen prices already coming off the 50D Moving Average though absent any compelling reason for a rally we do not expect to see a test…
