News Headline Summary

Continued JPY weakness sees USD/JPY approaching the 82.00 level where optionality is said to be high

- Watching out for any offers into the 82.00 level, trades 81.95 (+26 pips).

Reaction details (02:37)

- As of 0136GMT it seems offers into the 82.00 level have stalled the surge higher in USD/JPY for the time being.
- Note, there is talk of large stops building above the 82.00 mark.
- Trades 81.92 (+25 pips) last.

Analysis details (02:13)

- The move comes as the JPY has continued to weaken throughout the last two weeks on the premise that the ruling party in Japan will lose power to the LDP party in the December elections.
- Abe the leader of the LDP has been clear in his calls for further easing in monetary policy if he were to come to power.
- Most recently we have also seen the latest trade balance data in Japan for October show a larger deficit than analysts were expecting.
- The weaker JPY is assisting gains over in the local equity market with the Nikkei 225 up close to 1% on the session underpinned by strength in exporters, particularly tech based.

21 Nov 2012 - 02:11 - - Source: RANsquawk

Subscribe Now to RANsquawk

Click here for a 1 week free trial

RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: