Forex Flash: USDJPY's downside momentum is dead - Saxo Bank
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USD/JPY
FXstreet.com (San Francisco) - The USDJPY has been trading in a micro-range between 78.20 and 78.25 in the last hours of the American session with 0.13% declines so far today from opening price action and above the MA-200 hours at 78.19.
"Technically speaking, USDJPY's downside momentum is dead, with upside interesting on a follow up rally through 79.00," affirms Saxo Bank's Head of FX Strategy John J Hardy.
"USDJPY failed to fall as much as the low yield environment suggested it should have over the summer as the market feared BoJ intervention when USDJPY was working its way back toward the cycle lows, but more recently, yields suggest that the USDJPY risk is more to the upside," Hardy points. "A stronger signal is probably needed in bond markets, or from the BoJ/MoF before we get USDJPY to sustain anything above 79.00," the Saxo analyst concludes.
"Technically speaking, USDJPY's downside momentum is dead, with upside interesting on a follow up rally through 79.00," affirms Saxo Bank's Head of FX Strategy John J Hardy.
"USDJPY failed to fall as much as the low yield environment suggested it should have over the summer as the market feared BoJ intervention when USDJPY was working its way back toward the cycle lows, but more recently, yields suggest that the USDJPY risk is more to the upside," Hardy points. "A stronger signal is probably needed in bond markets, or from the BoJ/MoF before we get USDJPY to sustain anything above 79.00," the Saxo analyst concludes.
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