4 Jun 2015
USD/JPY sees downside risks – Scotiabank
FXStreet (Barcelona) - According to Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, the current rise in volatility suggest some downside risks remain for USD/JPY.
Key Quotes
“JPY is flat, consolidating within a narrow range for a second consecutive session, with limited movement in response to BoJ Gov. Kuroda’s speech in which he maintained a focus on longer-term policy objectives.”
“USDJPY appears vulnerable to sentiment, presenting downside risk in the current environment with rising volatility in bond permeating the broader market tone. Option prices hint to a rising desire for downside USDJPY protection as risk reversals have fallen steadily since late May.”
“USDJPY short-term technicals: bullish to neutral—momentum signals are fading and the RSI is flirting with a break below 70. USDJPY has been unable to break back above Tuesday’s high near 125 and appears set to test its 9 day MA at 123.74, beyond which we see limited support until 121.50.”
Key Quotes
“JPY is flat, consolidating within a narrow range for a second consecutive session, with limited movement in response to BoJ Gov. Kuroda’s speech in which he maintained a focus on longer-term policy objectives.”
“USDJPY appears vulnerable to sentiment, presenting downside risk in the current environment with rising volatility in bond permeating the broader market tone. Option prices hint to a rising desire for downside USDJPY protection as risk reversals have fallen steadily since late May.”
“USDJPY short-term technicals: bullish to neutral—momentum signals are fading and the RSI is flirting with a break below 70. USDJPY has been unable to break back above Tuesday’s high near 125 and appears set to test its 9 day MA at 123.74, beyond which we see limited support until 121.50.”