USD/JPY retreated after marching to the upside. What’s next?
Here is their view, courtesy of eFXdata:
NAB Research discusses USD/JPY outlook and notes that from a technical perspective USD/JPY has room to trade toward ¥114.50 before it finds some serious resistance.
“The speculative community has modestly increased it short JPY positioning, but history would suggest there is plenty of room for further increases.
Our USD/JPY fair value model also suggests the currency is not yet looking expensive and similar to the technical picture, a move to nearer ¥114.50 is needed for the pair to look rich (all else equal).
Our bias would be for USD/JPY to head above ¥114 as long as trade tension worries do not turn into a DM equity rout,†NAB argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
