JPY Trading Outlook (19-02-2015)

USD/JPY It was a fairly quiet session for the yen after the BOJ left policy unchanged o/n, but all that changed when the FOMC Minutes revealed a far more “Patient” committee than most expected. USD/JPY tumbled in sympathy with USD/JPY yield spreads, as pending Fed tightening were priced out. USD/JPY made new session lows on the news, getting below bids by the Tenkan at 118.82. Bids into 118.50 holding so far since then, but the steady downside misses in US econ data since the stellar Jan Jobs report may now be given greater heed. Minutes showed foreign CB easing seen as a positive development easing “international” risk, which may give the BOJ more space to ease later this year, but for now the focus is on the Fed and ECB. The latter extended the ELA to Greece for two-wks, but only upped the amount E3.3b to E18.3b. EUR/JPY couldn’t capitalize on that and is by session lows heading toward the NYSE close. Next decent support is at 134.50 and 134. GBP/JPY’s post UK labor data surge was rejected by the 61.8% at 184.23, with the post FOMC USD/JPY dive weighing on crosses. AUD/JPY capped again by Kijun & 50% at 93.35. JPY Trade Thur.