Forex Flash: Watch for exposed short-yen positions ahead of BoJ - RBS
FXstreet.com (Barcelona) - Ahead of the BoJ monetary policy decision on January 22, Rob Ryan, RBS analyst, reminds us that "recent BoJ decisions have been characterised by a sell-the-fact type reaction: even when the central bank has delivered the consensus easing measures, USDJPY has seen a knee-jerk pullback" he notes.
Mr. Ryan adds: "It seems to us that the market is now at risk of significant disappointment come Tuesday next week: if all we get is a vaguely worded desire for 1-2% inflation there could be a lot of exposed short-yen positions -- with crosses such as JPYKRW
and AUDJPY particularly at risk of a sharp unwind."
Mr. Ryan adds: "It seems to us that the market is now at risk of significant disappointment come Tuesday next week: if all we get is a vaguely worded desire for 1-2% inflation there could be a lot of exposed short-yen positions -- with crosses such as JPYKRW
and AUDJPY particularly at risk of a sharp unwind."
Free Annual Reports
