Forex Flash: A move to 110.00 on USD/JPY looks reasonable - Societe Generale
FXstreet.com (Barcelona) - With the most recent high in Asia printed at 89.28, according to Kit Juckes, Head of FX at Societe Generale, there is still plenty to chew on for the Yen bears.
Mr. Juckes notes: "Recent lows in USDJPY are more like a level of around 100 in the early 1990's, as opposed to being comparable to 1995's spike down to 80 in 1995. But on the other side of the equation, a move to USDJPY 110 looks to me a reasonable 'extreme' target, comparable to the levels we have seen in past periods of yen weakness."
"Put that in EURJPY terms and we can target 130 in extremis, and even if I think AUDUSD 'should' be around parity at some point, that leaves a lot of potential to buy AUDJPY" Kit adds.
Mr. Juckes notes: "Recent lows in USDJPY are more like a level of around 100 in the early 1990's, as opposed to being comparable to 1995's spike down to 80 in 1995. But on the other side of the equation, a move to USDJPY 110 looks to me a reasonable 'extreme' target, comparable to the levels we have seen in past periods of yen weakness."
"Put that in EURJPY terms and we can target 130 in extremis, and even if I think AUDUSD 'should' be around parity at some point, that leaves a lot of potential to buy AUDJPY" Kit adds.
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