7 Apr 2015
USD/JPY correction remains a good buy opportunity – DB
FXStreet (Barcelona) - Taisuke Tanaka, Strategist at Deutsche Bank, believes any near-term correction in USD/JPY is a good buy opportunity, and suggests going long at 118-120 levels.
Key Quotes
“The USD/JPY may see a brief correction mode. US non-farm payrolls (NFP) in March were up an unexpectedly low 126,000 persons MoM. US indicators for 1Q 2015 have generally been sluggish. There is a growing fear that earnings results for the quarter, soon to be released by companies, will show a downturn in profits. The consensus forecast for a Fed rate hike has shifted from June to September.”
“We believe the dollar will reach even greater highs against the yen from mid 2Q to 3Q as a rebound in US indicators prompts expectations of rate hikes ahead.”
“We believe any near-term correction in the USD/JPY would be a good opportunity in the new fiscal year for Japanese investors and importers to accumulate dollar long positions.”
“At the same time, we believe buying on weakness by these investors will limit the USD/JPY decline.”
“Yen bears should keep a close eye on the extent of the USD/JPY correction.”
Key Quotes
“The USD/JPY may see a brief correction mode. US non-farm payrolls (NFP) in March were up an unexpectedly low 126,000 persons MoM. US indicators for 1Q 2015 have generally been sluggish. There is a growing fear that earnings results for the quarter, soon to be released by companies, will show a downturn in profits. The consensus forecast for a Fed rate hike has shifted from June to September.”
“We believe the dollar will reach even greater highs against the yen from mid 2Q to 3Q as a rebound in US indicators prompts expectations of rate hikes ahead.”
“We believe any near-term correction in the USD/JPY would be a good opportunity in the new fiscal year for Japanese investors and importers to accumulate dollar long positions.”
“At the same time, we believe buying on weakness by these investors will limit the USD/JPY decline.”
“Yen bears should keep a close eye on the extent of the USD/JPY correction.”