JPY Trading Outlook (15-05-2014)

USD/JPY Other than a tiny blip up after US PPI came in above forecast, USD/JPY remained near the 101.71 session lows in NorAm trading. Hefty bids noted at 101.70 on the toy, with good Japanese bids noted at 101.50 on top of the string of higher swing lows since Feb’s 100.76 nadir and the 200-DMA at 101.16 last. Today’s lows are by the breached up TL from last June and the lower 21-day Bolli band. Weighing on the dollar today were the big drop in Tsy yields and stocks, with Nikkei futures down about 1.3% at last glance. That the weekly Kijun is now at 102.50 and by well-touted exporters and spec offers into the daily Cloud base at 102.44 casts something of the pall on prices this week. EUR/JPY is well below the 140 Cloud, prior lows & Fibo supports in the wake of the Reuters report sketching out what easing measures the ECB’s likely to take in June and despite Weidmann’s attempts to walk back any near-term QE expectations. GBP/JPY & AUD/JPY got tagged today, the former probing its up TL from Nov ’12 and the latter producing an outside down day. JPY Q1 GDP & MOF flow data tonight. Post-tax-hike data far more important to BOJ QQE2 hopes now.