5 Jan 2015
USD/JPY may continue to range-trade – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that technicals suggest the USD/JPY is more vulnerable to range trading than other currencies as the pair trades within its multi-week high 118.87-120.83 range.
Key Quotes
“USDJPY has had a relatively contained session, still trading within its multi‐week 118.87 to 120.83 range.”
“Today’s session is noteworthy with both JPY and gold outperforming, highlighting that the dramatic falls in currencies like EUR are spurring risk aversion, which in turn is supporting safe havens like JPY and gold.”
“USDJPY’s outlook over the medium term is still higher; particularly as the data since late December has been disappointing (with lower than expected prints on inflation, retail sales industrial production and earnings as well as dovish comments from Governor Kuroda); however in the near‐term USDJPY could fall victim to temporary downside pressure on the back of building risk aversion.“
“USDJPY short‐term technicals: mixed—suggesting that USDJPY is more vulnerable to range trading than other currencies. Near‐term support lies at 118.87, the recent low; while resistance comes in at 120.83, the recent high.”
Key Quotes
“USDJPY has had a relatively contained session, still trading within its multi‐week 118.87 to 120.83 range.”
“Today’s session is noteworthy with both JPY and gold outperforming, highlighting that the dramatic falls in currencies like EUR are spurring risk aversion, which in turn is supporting safe havens like JPY and gold.”
“USDJPY’s outlook over the medium term is still higher; particularly as the data since late December has been disappointing (with lower than expected prints on inflation, retail sales industrial production and earnings as well as dovish comments from Governor Kuroda); however in the near‐term USDJPY could fall victim to temporary downside pressure on the back of building risk aversion.“
“USDJPY short‐term technicals: mixed—suggesting that USDJPY is more vulnerable to range trading than other currencies. Near‐term support lies at 118.87, the recent low; while resistance comes in at 120.83, the recent high.”