USD/JPY testing upper boundaries - Societe Generale

By FXstreet.com | August 21, 2014 AAA

FXStreet (Guatemala) - Kit Juckes, chief analyst at Societe Generale noted that after the hawkish bias to FOMC minutes, the dovish camp gets its chance to sound off at Jackson Hole and focuses on the Yen.



Key quotes:



USD/JPY is on the verge of testing the upper bound of its half-year range, an attractive entry level to tactically trade a consolidation. Implied vol remains directional and realised vol is low, so we favour short vol trades on the downside”.



“As such, we recommend buying a USD/JPY 1M RKO put strike 103.40 with a KO barrier at 100.80, the lower bound of the range”.



comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. USD/JPY to Eye Fresh Highs on Less-Dovish FOMC, More BOJ Easing
    Forex News

    USD/JPY to Eye Fresh Highs on Less-Dovish FOMC, More BOJ Easing

  3. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

  4. USD/JPY anchored on 108 handle
    Forex News

    USD/JPY anchored on 108 handle

  5. USD/JPY Remains Capped by Former Support Ahead of FOMC, BoJ Meeting
    Forex News

    USD/JPY Remains Capped by Former Support Ahead of FOMC, BoJ Meeting

Trading Center