FXStreet (Edinburgh) - Lars Christensen, Chief Analyst at Danske Bank, sees the pair heading towards 105.40 in the medium term.
“In the major FX-crosses, the DXY index is pausing after the strong rally last week”.
“The EUR will continue to underperform given expectations of ECB easing and the risk that
TLTRO will ‘crowd out’ foreign buying of periphery bonds”.
“We see the JPY and CHF as vulnerable on likely future monetary easing”.
“Technically, USD-JPY may consolidate after the failure to break through important trend-line resistance. Medium-term charts point to 105.40 and 110.10, in line with our fundamental view”.