Forex Flash: Looking to fade recent JPY weakness - Goldman
Forex pairs in this Article »
USD/JPY
FXstreet.com (San Francisco) - USDJPY has advanced 3.5% since late September, reflecting a buildup in long USDJPY speculative positions rather than a change in fundamentals, according to Goldman Sachs.
Regarding FX strategy, considering that JPY's strength is still in place, Goldman Sachs says it would "look for opportunities to fade the recent Yen weakness, particularly if sentiment towards risk deteriorates."
GS continues: "From a more medium-term point of view, we would likely change our JPY stance if interest rate differentials became clearly Yen-negative again, something that could be the result of a
resolution of the 'fiscal cliff', in particular if US policymakers avoid reducing the debt and deficit levels."
USDJPY is steady consolidating around the 79.50 mark.
Regarding FX strategy, considering that JPY's strength is still in place, Goldman Sachs says it would "look for opportunities to fade the recent Yen weakness, particularly if sentiment towards risk deteriorates."
GS continues: "From a more medium-term point of view, we would likely change our JPY stance if interest rate differentials became clearly Yen-negative again, something that could be the result of a
resolution of the 'fiscal cliff', in particular if US policymakers avoid reducing the debt and deficit levels."
USDJPY is steady consolidating around the 79.50 mark.
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