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Forex pairs in this Article » EUR/USD, USD/CHF, GBP/USD, USD/JPY (Bali) - Below are the directional bias expected by JP Morgan Strategists for the coming weeks.

Key Quotes

"Euro is screening expensive on our fair value models on all crosses except CHF and we look for a correction in the coming weeks."

"USD/JPY should head higher still given the divergent monetary policies of the BoJ and the Fed (we target 106 by year-end), although on a
tactical basis the pair could see a pullback given record spec shorts on JPY."

"We stay positioned for a lower AUD/NZD and higher NOK/SEK and
GBP/JPY. As US yields increase further, outflows from countries that were beneficiaries of the low interest rate environment should weaken further (we are long USD/TRY and USD/IDR)."

"KRW should outperform in Asia as it is not vulnerable to higher US rates and should benefit from the boost to exports from the global cyclical upturn."
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