USD/JPY risks still tilted to the downside – Danske Bank
|Senior Analyst at Danske Bank Morten Helt sees the pair facing extra downside risks in the near term.
Key Quotes
“USD/JPY trades slightly higher this morning after the cross has been trading very close to the 111 figure over the past 24 hours. The sell-off in USD/JPY in the ahead of Thanksgiving might to some extent be explained by investors reducing risk ahead of holidays and USD/JPY could see some support today as US and Japanese investors return to the market”.
“However, we still see risks skewed to the downside in the short term, as speculative accounts are very short JPY and as the flattening pressure on the US yield curve is likely to remain a headwind for the cross. Technically, a clean break below the 111 could open up for a test of 110”.
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