8 Jun 2015
USD/JPY: further gains expected – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, sees further gains possible ahead for USD/JPY, expecting the pair to remain supported at 124.47.
Key Quotes
“JPY is rising from Friday’s fresh multi-year lows, strengthening modestly in response to improved domestic GDP revisions with subsequent gains driven by the broader USD tone. Domestic risk is relatively limited this week and U.S. releases are likely to be the primary focus as market participants consider the U.S. outlook heading into the June 18 FOMC. Relative policy is a key driver of our weak JPY forecast.”
“USDJPY short-term technicals: bullish—USDJPY reached fresh multi-year highs on Friday, and the RSI remains in overbought territory above 70. Further gains are expected, and we see support at the 9 day MA (124.47).”
Key Quotes
“JPY is rising from Friday’s fresh multi-year lows, strengthening modestly in response to improved domestic GDP revisions with subsequent gains driven by the broader USD tone. Domestic risk is relatively limited this week and U.S. releases are likely to be the primary focus as market participants consider the U.S. outlook heading into the June 18 FOMC. Relative policy is a key driver of our weak JPY forecast.”
“USDJPY short-term technicals: bullish—USDJPY reached fresh multi-year highs on Friday, and the RSI remains in overbought territory above 70. Further gains are expected, and we see support at the 9 day MA (124.47).”