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26 Feb 2015
USD/JPY might test 121.85 – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, comments that with USD/JPY shifting back to the fundamental story, a test of 121.85 levels is anticipated.
Key Quotes
“USDJPY is trading in a very tight range, suggesting indecision in markets.”
“Equities have rallied to fresh highs and volatility has collapsed lower, warning of USDJPY upside risk as the markets are likely to shift back to the fundamental story with the threat of risk aversion subsiding.”
“Accordingly, we are biased to be long USDJPY at current levels looking for a test up towards the December highs of 121.85 and would put a stop at 117.80.”
Key Quotes
“USDJPY is trading in a very tight range, suggesting indecision in markets.”
“Equities have rallied to fresh highs and volatility has collapsed lower, warning of USDJPY upside risk as the markets are likely to shift back to the fundamental story with the threat of risk aversion subsiding.”
“Accordingly, we are biased to be long USDJPY at current levels looking for a test up towards the December highs of 121.85 and would put a stop at 117.80.”