This by way of the oldsters at eFX.
- “We flip bearish for JPY as soon as once more, since Japan MoFs intervention made USD/JPY cheaper in comparison with the extent what coverage divergence narrative suggests. The present US terminal price pricing is 4.6-4.7%, which is commensurate with the USD/JPY degree of 146-147,” MS notes.
- “Given a budget USD/JPY valuation and the room for additional coverage divergence between Fed and BoJ, we see any dip for USD/JPY because of MoF intervention a very good alternative for lengthy USD/JPY. We imagine that the impression from any unilateral kind intervention could be short-lived. We re-initiate a USD/JPY lengthy place by way of choice,” MS provides.
I might say the purchase the dip in USD/JPY is just not a nasty concept in any respect! Technical analyst of us may disagree although given that massive exterior candle on intervention day. Feedback welcome.
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