Improving risk appetite negative for JPY, go long for $123.55 – GrowthAces

FXStreet (Barcelona) - The Growth Aces Research Team believe that the improving risk appetite as a result of QE will be negative for the Yen, and hence maintain a bullish outlook for USD/JPY, targeting 123.55 levels.

Key Quotes

“The Swiss National Bank and the Bank of Japan are the leaders in expanding their balance sheets in the relation to GDP of their countries. This means that the JPY and the CHF are likely to be under strongest pressure among major currencies.”

“The JPY and the CHF are also known safe-haven currencies and an improvement in risk appetite as a consequence of quantitative easing will be negative for these currencies.”

“We have raised our buy offer on the USD/JPY to 120.80.”

“The next strong resistance level is 123.67,daily high on July 9, 2007 and the target of our long position would be placed slightly below this level. The stop-loss level will be set below 119.90, daily low on March 6.”

“Significant technical analysis' levels:

Resistance: 121.29 (high Mar 6), 121.86 (high Dec 8), 122.00 (psychological level)

Support: 119.90 (low Mar 6), 119.47 (low Mar 4), 119.13 (low Feb 27)”

“USD/JPY: buy at 120.80, if filled – target 123.55, stop-loss 119.60”