16 Jun 2015
USD/JPY Forecast: break above 123.91 to pave way for 124.34 – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that USD/JPY rallied on Kuroda’s clarification, with the pair expected to head towards 124.34 on a break above 123.91.
Key Quotes
“JPY is soft, retracing most of its Kuroda-driven decline on the back of risk aversion driving safe haven flows. BoJ Gov. Kuroda has sought to clarify his recent comments, shifting the focus to the REER rather than the nominal exchange rate. JPY has been remarkably quiet over the past three sessions, and near term vulnerability lies with the broader market tone and the impact from Greece and the Fed ahead of the BoJ later this week.”
“USDJPY short-term technicals: mixed—momentum signals are conflicted, and recent movement in USDJPY has been bound between support at the 21 day MA (123.30) and resistance at the 9 day MA (123.91).”
“An upside break would shift the focus to the June 10 open at 124.34, with support expected near 122.50.”
Key Quotes
“JPY is soft, retracing most of its Kuroda-driven decline on the back of risk aversion driving safe haven flows. BoJ Gov. Kuroda has sought to clarify his recent comments, shifting the focus to the REER rather than the nominal exchange rate. JPY has been remarkably quiet over the past three sessions, and near term vulnerability lies with the broader market tone and the impact from Greece and the Fed ahead of the BoJ later this week.”
“USDJPY short-term technicals: mixed—momentum signals are conflicted, and recent movement in USDJPY has been bound between support at the 21 day MA (123.30) and resistance at the 9 day MA (123.91).”
“An upside break would shift the focus to the June 10 open at 124.34, with support expected near 122.50.”