| Tankan Manufacturing Index |
-8 |
-7 |
-12 |
| Tankan Non-Manufacturing Index |
6 |
8 |
4 |
| Monetary Base y/y |
19.8% |
16.3% |
15.0% |
| Average Cash Earnings y/y |
-0.7% |
-0.1% |
0.1% |
| Overnight Call Rate |
<0.10% |
<0.10% |
<0.10% |
| Leading Indicators |
97.5% |
97.2% |
95.0% |
The low readings of the Tankan Manufacturing and Non-manufacturing have triggered a risk aversion in the beginning of the week which has strengthened the yen. The appreciation did not last long, because on Thursday BOJ revealed its new monetary policy which should help them reach the 2% inflation target.
Bank of Japan decided to buy bonds of all kind of maturities, not only 3-y bonds as they used to, and agreed to raise the stimulus package from 2 trillion yens monthly to 7 trillion yens. This had as effect a plunge of the yen in front of all its 16 peers.
Next week main indicator will be published Monday in the morning and it will be the Current Account expected to rise at 0.46T.
The USDJPY chart is beautiful. After it has fallen to 92.52 support as expected, it has rallied on Thursday and on Friday more than 5 yens per dollar, reaching 97.84 yens per dollar. We can expect a retrace back to the 96.50 current support before continuing its way up to 99.00 level.
Wrap Up 1-5 April USDJPY Up 3.5% by Razvan Mihai
