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30 Dec 2014
USD/JPY focus might shift towards 118 levels – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that the strong JPY might shift the focus for USD/JPY towards 118.00 levels if the pair breaks below the support at 119.20.
Key Quotes
“JPY is strong, outperforming with a 0.9% gain, supported by deteriorating market sentiment and year-end positioning ahead of Japan’s December 31 holiday.”
“The absence of domestic releases leaves JPY vulnerable to broader developments, with heightened near term sensitivity centered on U.S. confidence data.”
“Technically, the failure to break above 120.80 and the decline back below 120.00 hint to the potential for further downside risk. We note the 21 day MA at 119.47 and recent support at 119.20—a break of either of these levels would shift the focus to 118.00.”
Key Quotes
“JPY is strong, outperforming with a 0.9% gain, supported by deteriorating market sentiment and year-end positioning ahead of Japan’s December 31 holiday.”
“The absence of domestic releases leaves JPY vulnerable to broader developments, with heightened near term sensitivity centered on U.S. confidence data.”
“Technically, the failure to break above 120.80 and the decline back below 120.00 hint to the potential for further downside risk. We note the 21 day MA at 119.47 and recent support at 119.20—a break of either of these levels would shift the focus to 118.00.”