19 Jan 2016
USD/JPY: upside could struggle at 118.40/80 – TDS
FXStreet (Edinburgh) - In opinion of Ned Rumpeltin, Strategist at TD Securities, the upside momentum in the pair could find strong resistance around 118.40/80.
Key Quotes
“Our JPY bullish view continues to benefit from the wave of risk aversion sweeping across markets”.
“We, however, think other fundamental forces are supporting yen strength and expect this trend to continue. Our initial target for USDJPY remains a retest of the August panic lows at 116.18”.
“Like several other G10 currencies, however, we are aware that the speed of the move presents its share of near-term risks”.
“That suggests investors should exercise increased discipline on USDJPY shorts this week. A rebound, should it occur, should encounter resistance at 118.40 and 118.80. We would view any backup as a technical correction to the down trend and look to reload shorts from such levels”.
Key Quotes
“Our JPY bullish view continues to benefit from the wave of risk aversion sweeping across markets”.
“We, however, think other fundamental forces are supporting yen strength and expect this trend to continue. Our initial target for USDJPY remains a retest of the August panic lows at 116.18”.
“Like several other G10 currencies, however, we are aware that the speed of the move presents its share of near-term risks”.
“That suggests investors should exercise increased discipline on USDJPY shorts this week. A rebound, should it occur, should encounter resistance at 118.40 and 118.80. We would view any backup as a technical correction to the down trend and look to reload shorts from such levels”.