24 Jan 2014
Flash: USD/JPY at 125.00 in 12 months a reachable target but... - TDS
FXstreet.com (Bali) - Shaun Osborne, Chief FX Strategist at TDS, looks at the present risks trading USD/JPY.
Key Quotes
"On the one hand, the charts are bullish. A solid uptrend early last year followed by consolidation through H2 2013 and a renewed push higher though the JPY95/100 area confers a solidly bullish, medium-term technical outlook to USDJPY and suggests JPY125 is reachable in the next 12 months or so."
"On the other hand, positioning (the market is carrying a significant net JPY short position already) and rising volatility in other asset classes could drive the JPY higher. We note rising anxiety in developing market FX, especially the TRY but also the THB, as well as focus on the recent weakness in Chinese equity markets."
Key Quotes
"On the one hand, the charts are bullish. A solid uptrend early last year followed by consolidation through H2 2013 and a renewed push higher though the JPY95/100 area confers a solidly bullish, medium-term technical outlook to USDJPY and suggests JPY125 is reachable in the next 12 months or so."
"On the other hand, positioning (the market is carrying a significant net JPY short position already) and rising volatility in other asset classes could drive the JPY higher. We note rising anxiety in developing market FX, especially the TRY but also the THB, as well as focus on the recent weakness in Chinese equity markets."