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The pair traded above the pivotal ¥100 mark in the US session and traders will be eyeing to see if a sustained break higher is in place, or profit taking will prevail.
The move above 100 for USD/JPY is set to lift the Nikkei at the open today with our call seeing the index open above 15,000 for the first time since May. This will be a pivotal move and could result in some profit taking.
Traders were on GDP watch with euro area Q3 GDP in-line with consensus. The main story however was France relapsing and returning to contraction (-0.1%). With continuing mixed readings, there will be plenty of emphasis on the region’s final CPI today, after the weak preliminary reading.
We will continue to watch JHX today and whether it can maintain its run after a big move higher yesterday. The stock has been upgraded to outperform (from neutral) by Deutsche Bank today with a $13.51 price target.