Back
3 Sep 2015
USD/JPY: firmer in mild risk-appetite with China/HK out - Scotia
FXStreet (Guatemala) - Eric Theoret, CFA, CMT Currency Strategist at Scotiabank noted that the JPY is soft, underperforming along with EUR and CHF in an environment of modest risk appetite heading into China’s two day holiday.
Key Quotes:
"Fundamentally the path for JPY remains bearish, its recent gains resulting from broader market turmoil driven by uncertainty surrounding the outlook for China and the Fed. We note the potential for weakness through the remainder of the week."
"USD/JPY short-term technicals: bearish-neutral—signals are broadly bearish, however we note that momentum indicators appear to be showing signs of renewed moderation. USDJPY has found near term support around 119.20, well above its Aug 24 lows. A break back above the 200 day MA (120.79) would shift the focus to upside risk and gains toward 122.00."
Key Quotes:
"Fundamentally the path for JPY remains bearish, its recent gains resulting from broader market turmoil driven by uncertainty surrounding the outlook for China and the Fed. We note the potential for weakness through the remainder of the week."
"USD/JPY short-term technicals: bearish-neutral—signals are broadly bearish, however we note that momentum indicators appear to be showing signs of renewed moderation. USDJPY has found near term support around 119.20, well above its Aug 24 lows. A break back above the 200 day MA (120.79) would shift the focus to upside risk and gains toward 122.00."