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Forex pairs in this Article » USD/JPY (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities explaining a bullish bias for USD/JPY.

Key Quotes

“USDJPY barely corrected a third of the late 2013 rally from 97/104.45 before rebounding strongly yesterday. We are bullish on the outlook for USDJPY overall this year—long via options was one of our top trades for the year—and look for steady gains overall towards the 110 area this year (based on improving US fundamentals and rising long-term rates versus the risk of a growth stumble and more BoJ easing in Japan)."

"The risk of an overshoot on the topside will increase if the BoJ adds further stimulus to compensate for the impact of the sales tax increase, which should be implemented in April. Bigger picture technical signals support the risk of a significant topside move still to come (towards 125 or so over the next 12 months, we think)."

"Look for support in the upper 103s from here. Clearing 105.50 (long-term retracement resistance) in the next few weeks will augur very positively for USDJPY in the longer-term."
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