Archived IMT (2009.03.30)

Despite broadly negative forecasts for this week's release of Japan's Tankan survey, FX traders are cautioned that often times when expectations were gloomy, sources of positive surprise emerged from better than expected Capex component as well as a yen bounce from the decline in risk appetite. yen is already pushing higher after Asian bourses' profit-taking of previous gains, especially on the back of Friday's losses in NY. USDjPY may retest 97 and EURJPY may probe below 128.80. Also watch our much-published warning of cable breaking below $1.42. I'm in Singapore until mid week therefore the frequency of updates will be more erratic than usual.