USD/JPY to trade mostly sideways within the 111.65-114.50 range near term – Danske Bank
|Chief Analyst, Allan von Mehren at Danske Bank, explains that USD/JPY remains supported by higher US yields and risk appetite and they still see USD/JPY trading mostly sideways within the 111.65-114.50 range near term, targeting 113 in 1-3M.
Key Quotes
“Technically, resistance levels are seen at 113.38 and 113.64 with substantial support below 113. We see little chance of a substantial break higher in USD/JPY due to very stretched speculative positioning, according to the IMM, and further flattening pressure on the US yield curve. Tactically, we would consider selling USD/JPY on rallies towards 114 for a short-term move down to 111.69 (200 day MA), with a stop at 114.55.”
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