Japanese output surge supports the Nikkei……USDJPY to follow
Japan’s factory output rebounded in September to its highest level in nearly one-and-a-half years at 5.4% y/y. It was largely strong domestic demand from the government’s stimulus package behind the rise. The rise bolsters opinion that Japan is recovering. For the JPY, the clearest relationship remains that between Japanese equities and the USDJPY. The Nikkei has responded positively to this news and we believe USDJPY should follow higher too.
Read the full report:FX Daily
BNP Paribas