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4 Mar 2013
Forex Flash: USD/JPY looks neutral ahead - OCBC Bank
Emmanuel Ng of OCBC Bank is neutral on USD/JPY for the meantime, pending further news flow from the government and the BoJ.
However, on the other end of the equation he feels that any further indications of economic resilience in the US may continue to grant sustained yield advantage for the USD against the JPY. He writes. “In the interim, the pair may remain mixed, bordered by 95.60 on the top side while supports on the downside are expected at 92.00 and then at 91.40. On the CFTC front, speculative CFTC net JPY shorts increased slightly in the latest week, in line with the market’s bearish view on the yen.”
However, on the other end of the equation he feels that any further indications of economic resilience in the US may continue to grant sustained yield advantage for the USD against the JPY. He writes. “In the interim, the pair may remain mixed, bordered by 95.60 on the top side while supports on the downside are expected at 92.00 and then at 91.40. On the CFTC front, speculative CFTC net JPY shorts increased slightly in the latest week, in line with the market’s bearish view on the yen.”