quote:Lars Skriver - Jyskebank
Can the Tankan report on Monday do what a higher Nikkei,
higher bond yields and better economic fundamentals cannot
do? Namely taking the JPY higher across the board and
especially against the EUR. This would be a bit surprising as the
Japanese currency tends to be immune against any fundamental
figures. Could this report for once be the excpetion that
confirms the rule? I doubt it. Though it would suit me fine, as I
keep my entrance level for a new funding position in the JPY
against the EUR around the 133.50 level. A strategy which so far
has failed to pay out. With the risk of repeating myself the key
word for approaching the JPY regarding any funding is
patience. This is especially worth to remember as the EUR/JPY
is tumbling around without having any kind of trend at all.
With the latest positive development on the domestic side in
Japan I guess there must be a few disappointed JPY bulls out
there. This does not include myself. The latest comments of
Suda from BoJ might have given them more appetite as they,
once more, were rather hawkish regarding a change of the
monetary policy in Japan. Too early I would say. Any change of
the current policy takes time in Japan and before this could
happen we need to see the CPI continously spiking higher
taking the economy out it's current deflation. We are not there
yet.
Hence I still see the whereabouts of the EUR/JPY between the
131 and 141, and if The Tankan can boost the JPY, I would use
this as an opportunity to put on a new funding position against
the EUR at the 133.50 level.
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