24 Jul 2015
USD/JPY: A buy on dips theme plays on - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained the dollar has been confined to about a 3/4 yen range this week between JPY123.75 and JPY124.50.
Key Quotes:
"Three-month implied yen volatility neared the lows for the year earlier this week before ticking higher in the second half of the week."
"Even though the dollar looks at risk against the yen given the pullback in stocks and US bond yields, short-term participants are unlikely to want to get too short ahead of the FOMC meeting next week and the following week's US jobs report. Over the medium and longer terms, dollar pullbacks will likely be seen as better buying opportunities for investors."
Key Quotes:
"Three-month implied yen volatility neared the lows for the year earlier this week before ticking higher in the second half of the week."
"Even though the dollar looks at risk against the yen given the pullback in stocks and US bond yields, short-term participants are unlikely to want to get too short ahead of the FOMC meeting next week and the following week's US jobs report. Over the medium and longer terms, dollar pullbacks will likely be seen as better buying opportunities for investors."