20 Nov 2013
Flash: USD/JPY, more choppiness ahead
FXstreet.com (London) - A research team at TD Securities said the JPY is the top performing G10 currency with a number of factors helping to drive the move.
Key Quotes:
“Fundamentally, a weaker than expected trade balance and indications that pension reforms (toward greater international allocations) could take quite a long time both supported the JPY, while the ‘risk off’ tone to markets only added to the lift for the ‘safe haven’ currency”.
“The two-day BoJ meeting continues tonight and while we don’t expect any significant policy announcements, official commentary could provoke more choppy price action”.
“It’s worth noting that speculative short positioning in the JPY has grown to extreme levels again (as per last week’s CFTC data), leaving the potential for a short squeeze”.
Key Quotes:
“Fundamentally, a weaker than expected trade balance and indications that pension reforms (toward greater international allocations) could take quite a long time both supported the JPY, while the ‘risk off’ tone to markets only added to the lift for the ‘safe haven’ currency”.
“The two-day BoJ meeting continues tonight and while we don’t expect any significant policy announcements, official commentary could provoke more choppy price action”.
“It’s worth noting that speculative short positioning in the JPY has grown to extreme levels again (as per last week’s CFTC data), leaving the potential for a short squeeze”.