USD/JPY: a test of 116.18 is likely – TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The outlook on the Japanese safe haven has now turned to the bullish side, suggested Ned Rumpeltin, FX Strategist at TD Securities.

    Key Quotes

    “We have turned bullish on the yen after a major depreciation cycle lasting more than three years”.

    “This week’s data and event schedule is relatively quiet, but we will be keeping an eye on this week’s current account data as an improvement in Japan’s external flow dynamic has become an increasingly supportive element for the JPY”.

    “We are looking for USDJPY to move down to challenge the August panic lows at 116.18 as the BoJ remains on hold, Fed hikes are largely priced in for this pair, and
    Japan’s fundamentals have improved”.

    “Interestingly, we note that the 200d moving average has rolled over and has started to trend lower this week”.

    “If sustained, we could see technically-driven participants become more active sellers of this pair in the days ahead”.
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