JPY continues to strengthen – Danske Bank

Sandeep Kanihama FXStreet Contributor

JPY continues to strengthen as overnight, the technical support level at 107.25 was taken out in USD/JPY and both USD/JPY and EUR/JPY are trading lower this morning, notes Senior Analyst, Piet P.H. Christiansen at Danske Bank.

Key Quotes

“Price action suggests that the break lower in USD/JPY is technically driven on the back of general USD weakness with lots of short JPY positions exposed to the sell-off. In the short term, the strong momentum and stretched short JPY positioning suggest that further downside could be in store for USD/JPY. Look out for a reaction from the Bank of Japan. We are currently reviewing our USD/JPY forecast.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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