Monday, October 20, 2014

Japanese yen is steady on Monday, as USD/JPY

The Japanese yen is steady on Monday, as USD/JPY trades just below the 107 line. It’s a quiet start to the week, with no US or Japanese releases on Monday. In Japan, BoJ Governor Haruhiko Kuroda reiterated the central bank’s policy stance.
USD/JPY ratio is showing little movement on Monday. This is not consistent with the pair’s movement, as the yen has posted gains against the dollar. The ratio has a majority of long positions, indicative of trader bias towards the dollar reversing direction and moving higher.
On Monday, BoJ Governor Haruhiko Kuroda stated that Japan’s economy continues to improve modestly, although consumer demand is down after the consumption tax hike in April. The BoJ would prefer to stay on the sidelines, but there has been talk that the central bank could step in with additional stimulus if the economy takes a turn for the worse. Such a move would weigh on the already weak Japanese yen.