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22 May 2014
USD/JPY bearish technicals - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that USD/JPY is bearish with all studies warning of near-term downside risk.
Key Quotes
"JPY is strong, up 0.3% as Governor Kuroda maintained a relatively firm tone. The BoJ made no change to policy, targeting a monetary base of ¥270trn, expecting an ongoing moderate recovery and the achievement of its 2% CPI target."
"In comments afterwards, Governor Kuroda highlighted that Japan is already halfway to its 2% CPI target, that it doesn’t target a level in USDJPY and that QQE is having the intended impact. Thereby providing no hint that an expansion in the QQE program is imminent."
"The Japanese trade deficit was worse than expected but narrowed to ‐¥809bn as both exports and imports were stronger than anticipated. USD/JPY is at risk of further downside in the near‐term; however we have made no change to our year‐end 109 target."
"USD/JPY short‐term technicals: bearish—with all studies warning of near-term downside risk. Accordingly we favour holding USD/JPY from the short side for near‐term traders. Support lies at the ytd low of 100.76; while resistance comes in at 101.43."
Key Quotes
"JPY is strong, up 0.3% as Governor Kuroda maintained a relatively firm tone. The BoJ made no change to policy, targeting a monetary base of ¥270trn, expecting an ongoing moderate recovery and the achievement of its 2% CPI target."
"In comments afterwards, Governor Kuroda highlighted that Japan is already halfway to its 2% CPI target, that it doesn’t target a level in USDJPY and that QQE is having the intended impact. Thereby providing no hint that an expansion in the QQE program is imminent."
"The Japanese trade deficit was worse than expected but narrowed to ‐¥809bn as both exports and imports were stronger than anticipated. USD/JPY is at risk of further downside in the near‐term; however we have made no change to our year‐end 109 target."
"USD/JPY short‐term technicals: bearish—with all studies warning of near-term downside risk. Accordingly we favour holding USD/JPY from the short side for near‐term traders. Support lies at the ytd low of 100.76; while resistance comes in at 101.43."