27 Jul 2015
USD/JPY well supported near 122.90 – OCBC Bank
FXStreet (Edinburgh) - Emmanuel Ng, FX Strategist at OCBC Bank, argues that pullbacks could be well contained around 122.90.
Key Quotes
“Nervous global sentiment may continue to underpin the JPY somewhat in the near term with 124.00 (before 124.50) continuing to cap in the near term”.
“On the CFTC front, net leveraged JPY shorts increased in the latest week but this effect we think would have been diluted by heightened investor nervousness towards the end of last week”.
“The FOMC may prove ultimately to be in the driver’s seat for the pair with initial support expected towards the 55-day MA (122.92) and price action expected to be choppy to top heavy in the interim”.
Key Quotes
“Nervous global sentiment may continue to underpin the JPY somewhat in the near term with 124.00 (before 124.50) continuing to cap in the near term”.
“On the CFTC front, net leveraged JPY shorts increased in the latest week but this effect we think would have been diluted by heightened investor nervousness towards the end of last week”.
“The FOMC may prove ultimately to be in the driver’s seat for the pair with initial support expected towards the 55-day MA (122.92) and price action expected to be choppy to top heavy in the interim”.