JPY Trading Outlook (06-11-2014)

USD/JPY Well-know spec profit-taking targets by 115 got front-run by nimble traders at 114.85, but USD/JPY remains up almost 1% on the day and pullbacks are being bought into quickly because the BOJ/GPIF stunner on Friday has drastically changed the M-T outlook. The above-f/c ADP was the catalyst for the session high, while the Services ISM later helped to subdue the rebound from the 114.40 morning low. More barriers are seen at 115, with stops above, but trading may become a tad more cautious awaiting the NFPs report Friday. AUD/JPY tumbled after making a marginal new trend high. By contrast, CAD/JPY surged, in part helped by a bounce in oil. GBP/JPY shrugged off a weak Services PMI to nearly close the gap on the 50% retracement of the post GFC dive at 183.96. EUR/JPY gains were more modest due to the ongoing concerns about the region’s economic outlook, debt servicing on the periphery and the ability of the ECB to enact QE in a timely manner. On that score, Thur’s ECB meeting will be watched for any indication the move to buying govt bonds will come sooner rather than too much later. JPY Leading/Coincident Indicators tonight.