11 Feb 2015
Sceptical about USD/JPY’s rally – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, comments that USD/JPY has been supported by US TIIPS yields, but stays sceptical on the pair’s rally.
Key Quotes
“USD/JPY continues to track US TIIPS yields pretty closely.”
“Rising US real yields and a positive equity/risk mood are required to get the USD/Y uptrend going again, and we are a little sceptical about how much further we can go just yet - partly because the relative US/Japan real yield is dragged down by rising JGBI yields.”
“However, the break of 119.25 does provide a healthy technical outlook, and US equities do maintain a bid today the year's high above 120.50 is reachable.”
Key Quotes
“USD/JPY continues to track US TIIPS yields pretty closely.”
“Rising US real yields and a positive equity/risk mood are required to get the USD/Y uptrend going again, and we are a little sceptical about how much further we can go just yet - partly because the relative US/Japan real yield is dragged down by rising JGBI yields.”
“However, the break of 119.25 does provide a healthy technical outlook, and US equities do maintain a bid today the year's high above 120.50 is reachable.”