JPY Trading Outlook (17-10-2014)

USD/JPY Stronger-than-expected US Claims and IP data gave USD/JPY, and most other yen crosses, a lift up in NorAm trading. The rebound was fairly subdued compared to recent losses, in part because Tsy yields and stocks gain little traction on the news. The IP was less impressive than the headline due to surges in Utilities and Mining, while NAHB and Philly Fed were poor. There is also the matter of what the market wants/fears most at this point. Is good US news good for the USD and bad for the yen because the US could help the rest of the world recover, or is it bad news because it keeps Fed dots in place, risking further financial upheaval. Careful what you wish for. Meanwhile, BOJ’s Kuroda has again voiced his approval of a weaker yen if fundamentals justify it. The angst at the ECB and EU is thickening. USD/JPY has managed to hold above the daily Cloud at 105 that real money and Japanese buyers are reported bid in front of at 105.20-00. But today’s rebound is so far stalled by the o/n & late NY Wed highs in the 106.30s. The crosses all rallied hard on the upbeat US data, but p/t was integral there. N225 by its up TL fm Jun 1’3, last at 14,628.