USD/JPY Over the past three days, the yen has returned to a high of April 25th with the help of the overall growth of the US dollar. The stability of the Japanese currency against yesterday's decline in the stock market (Dow Jones -0.61%) indicates a strong market confidence in the intentions of the Japanese Central Bank to continue the ultra-soft policy at the current inflation of 1.1% to 2.0% target. Today, the final estimate of Manufacturing PMI for April was raised to 53.8 from 53.3. Asian stock indexes are growing: Nikkei 225 0.14%, Shanghai Composite 0.23%, S&P/ASX 200 0.53%, IDX Composite 1.27%. Tomorrow, Japan will release the index of consumer confidence for April, a forecast of 44.6 versus 44.3 in March. Against the backdrop of expectations of the growth of the US dollar in connection with the expected good statistics and a new impulse to strengthen at the FOMC meeting of the Fed, which will be tomorrow, we expect the yen to rise to 110.30 and further towards the range of 110.85-111.10. |
