Archived IMT (2010.07.08)

YIELDS AND STOCKS TURN HIGHER at the expense of JPY. USDJPY joins the rest of yen crosses in robust 3-day climb. But the combination of US earnings season and European stress tests starting next week, equities will face another sobering obstacle. The expiration of US jobless benefits and homebuyer credits could speed the way for fresh downside in USDJPY. For now, the pair seems to target 89.40, but a beach of 90.30 is unlikely.