JPY Trading Outlook (24-06-2014)

USD/JPY Above-f/c Markit Japan PMI and HSBC China PMI failed to do the Nikkei any favors o/n, leaving USD/JPY struggling until bids by the daily Kijun line and Friday’s low at 101.80-815 were reinforced by a spate of better-than-expected US data and firmer Tsy yields. A Reuters story on Abe’s third arrow announcement due out Tuesday being light on key labor reforms suggests if there is upside for the Nikkei and downside for the yen, it probably will not be from Tuesday’s announcement. Offers remain by the 100-DMA at 102.20. AUD/JPY surged on the China PMI, but gave back most of its gains over the course of the session after this year’s highs couldn’t be removed. GBP/JPY had its first session since June 12 without either a higher high or higher low and looks top-heavy technically and perhaps at some risk if the UK’s FPC on Thur put forth a solid plan to keep the housing bubble under control, thus removing one reason for the MPC to hike rates sooner rather than later. EUR/JPY remains stuck below the 50% Fibo & 200-DMA at 138.90/96.