USD/JPY
has remained firm as global equities continue to advance and moves through
October highs of 121.47 with bulls eager for a break-out to test the 100 DMA at
121.76 and the golden ratio 61.8% level of the August highs of
125.27.
The data out of Japan was also impressive with Japanese services
PMI that grew to 52.2 in October from 51.4 in September and composite PMI grew
to 52.3 in October from 51.2 in September. Then, Japanese Consumer Confidence
Index grew to 41.5 in October (Consensus 40.8) from 40.6 in
September.
From the US shift so far, the data has also been good with
Markit PMI Composite for Oct 55.0 vs 54.4 previous, Markit Services PMI for the
same month beating expectation of 54.6 arriving at 54.8 and up on pre 54.4 while
ISM Mon-Manufacturing PMI coming in at 59.1 vs 56.5 consensus and 56.9 pre. The
ADP report, 182k vs 180k, but below 190k pre, still sets a positive back-drop
for Nonfarm
Payrolls on Friday.
See here for
FXStreet's Nonfarm Payrolls forecast
Yellen has finally hit
the wires and treasuries are feeling the pressure on hawkish comments, saying
that Dec is live if data is supportive while saying that the FOMC thinks that it
might be appropriate to move in the same month while saying the economy is
performing well. We await to hear from Dudley and Fisher.
