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8 Mar 2013
Forex Flash: USD/JPY: 100.00 seems to be a common target - BBH
The dollar is little changed against most major currencies ahead of the US data, but stronger against the yen. USD/JPY rose to 95.79, the highest since August 2009. "Barriers thought to have been around JPY95.25 and JPY95.50 have been triggered and the dollar remains firm", says BBH team.
Meanwhile, Japan reported a third consecutive monthly current account deficit. "However, the January deficit was roughly half of what was expected and exports did rise 6.7% from year ago levels. At a high level, the trade deficit still worsened faster than the income surplus increased", BBH comments.
"As we have noted before, there continues to be reports of good demand for JPY100 strike dollar calls, which seems to be a common target", they say. "Similarly, in the Nikkei, which tacked on another 2.6% (for a 5.8% gain on the week), many are looking at a 13,000 target (today's close: 12,283)".
Meanwhile, Japan reported a third consecutive monthly current account deficit. "However, the January deficit was roughly half of what was expected and exports did rise 6.7% from year ago levels. At a high level, the trade deficit still worsened faster than the income surplus increased", BBH comments.
"As we have noted before, there continues to be reports of good demand for JPY100 strike dollar calls, which seems to be a common target", they say. "Similarly, in the Nikkei, which tacked on another 2.6% (for a 5.8% gain on the week), many are looking at a 13,000 target (today's close: 12,283)".