1. SUMMARY
This past week was a rollercoaster ride for the Yen as it opened with downward gaps in all its major currency pairs making it stronger. Then went higher (weaker) and for the better part of the week showed strength until Friday where it closed being weak again. The BOJ Governor’s speech on the 05/12/2016 at the Paris EUROPLACE Financial Forum in Tokyo was almost similar to that of his deputy Hiroshi Nakaso delivered on the 18/11/2016. They both touched on Technology, blockchain, Distributed Ledger Technology (DLT), Artificial intelligence (AI), the advantages and disadvantages of IT in financial services as well as the introduction of smartphones and virtual banks. For more reading please click here

2. ECONOMIC INDICATORS
There was no high impact news for the JPY specifically this past week.
05/12/16: Consumer confidence was down by 1.4 to 40.9 which exactly where it was six (6) months ago. BOJ Governor Haruhiko Kuroda’s speech has been summarized in 2 above.
06/12/16: Average cash earnings (y/y) was up by 0.1% from 0.0%.
07/12/16: Leading indicators was also up by 0.7% from 100.3%. This is a combination of more than ten (10) economic indicators, which means that things might start to be looking good for the Japanese economy. This might translate into more Yen circulation and crossing borders.
08/12/16: Japan’s current account also went up by 0.45 Trillion Yens from 1.48T to 1.93T. The final GDP (q/q) and final GDP Price index (y/y) were both down by 0.2% and 0.1% respectively, while bank lending remained the same at 2.4%. The economic watchers sentiments was up by 2.4 to 48.6 which means workers are starting to be positive about the country’s economy. The average interest rate on the 30Y Bond auction went higher by 0.11% from 0.51% to 0.62% whilst the bid-to-cover ratio went down by 0.6 from 3.5 to 2.9.
09/12/16: BSI Manufacturing Index jumped up by 4.6 to 7.5 and the M2 Money stock also went up by 0.3% to 4.0%.

3. COT REPORT ON JPY
The report shows a serious increase in short positions for the past five (5) weeks, meaning that more people are selling the Yen. It is almost flat for the past three (3) weeks after declining meaning that less and less people are buying the Yen.

4. REFERENCE
These are the sites used to compile this information
http://www.esri.cao.go.jp/en/stat/shouhi/shouhi-e.html
http://www.mhlw.go.jp/english/database/db-l/index.html
http://www.esri.cao.go.jp/en/stat/di/di-e.html
http://www.mof.go.jp/international_policy/reference/balance_of_payments/preliminary/bp201610.pdf
http://www.esri.cao.go.jp/en/stat/di/di-e.html
http://www.boj.or.jp/en/statistics/dl/depo/kashi/kasi1611.pdf
http://www.boj.or.jp/en/statistics/money/ms/ms1611.pdf

5. TECHNICAL SUMMARY
NIKKEI continued being bullish this past week. It opened at 18 341.80 and closed on Friday at 19 228.80 reaching its highest since November last year [twelve (12) months]. Hopefully the charts are uploaded below.

JPY’s performance this past week against other major currencies was generally weak with few instances of retracements where it got a little bit stronger.
USD/JPY was bullish (JPY weak). It closed at 115.240 on Friday and hit its highest price by breaking through the 115.000 psyche level to reach 115.370 in ten (10) months from opening at 113.316. It went up by 1.6% in order to reach the highest price. Weekly pivot point target was not achieved.

GBP/JPY was bullish (JPY weak). It closed at 144.910 on Friday. It hit its highest price by breaking through the 146.000 psyche level to reach 146.044 in six (6) months from 143.520. This highest price was before and during BREXIT. This movement from the opening to the highest price was up by 1.8%. The weekly target was also not reached.

EUR/JPY was bullish (JPY weak). It closed at 121.680 on Friday. It hit its highest price by breaking through the 123.000 psyche level to reach 123.350 in seven (7) months. This movement from the opening to the highest price was up by 2.5%. The weekly target was reached.

CAD/JPY was bullish (JPY weak). It closed at 87.430 on Friday. It hit its highest price by breaking through the 87.000 psyche level to reach 87.590 in eight (8) months from 85.140. This movement from the opening to the highest price was up by 2.9% which was the biggest compared to other JPY major pairs. The weekly target was reached.

NZD/JPY was bullish (JPY weak). It closed at 82.250 on Friday. It hit its highest price by breaking through the 82.000 psyche level to reach 82.520 in eleven (11) months from 80.820. This movement from the opening to the highest price was up by 2.1%. The weekly target was reached.

AUD/JPY was bullish (JPY weak). It closed at 85.880 on Friday. It hit its highest price by breaking through the 86.000 psyche level to reach 86.090 in eight (8) months from 84.390. This movement from the opening to the highest price was up by 2.0%. The weekly target was reached at WM4.

CHF/JPY was bullish (JPY weak). It closed at 113.250 on Friday. It hit its highest price by breaking through the 113.000 psyche level and failed to break 114.000 to reach 82.520 in eight (8) months from 111.960. This movement from the opening to the highest price was up by 1.6% which was the smallest compared to other JPY major pairs this past week. The weekly target was also not reached.

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