Forex Flash: USD/JPY is technically bearish – BBH
FXstreet.com (Barcelona) - Marc Chandler of Brown Brothers Harriman believes that Japan's macro-economic conditions, like the contracting economy, offer textbook fundamental reasons not to like the Yen.
However, he notes that it took the threat of significant currency debasement by the man expected to be the next PM to spure the Yen's slide. Chandler believes that the adjustment does not appear to be over, even if the recent pace, a 3.6% slide since November is not sustained. He sees support around 81.80-60 and to the upside there have been reports of good demand for 83-84 strikes. The annual high, set in March close to 84.18 and the year previous around 85.50. He finishes by stating that the demand for Euros against the Yen may have helped start the Euro rally. Looking to EURJPY he feels that a move to 111 is realistic.
However, he notes that it took the threat of significant currency debasement by the man expected to be the next PM to spure the Yen's slide. Chandler believes that the adjustment does not appear to be over, even if the recent pace, a 3.6% slide since November is not sustained. He sees support around 81.80-60 and to the upside there have been reports of good demand for 83-84 strikes. The annual high, set in March close to 84.18 and the year previous around 85.50. He finishes by stating that the demand for Euros against the Yen may have helped start the Euro rally. Looking to EURJPY he feels that a move to 111 is realistic.
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