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14 Feb 2014
Flash: USD/JPY eye's for 100 DMA - Scotiabank
FXStreet (Guatemala) - FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes that the Yen is headed towards the 100 DMA.
Key Quotes:
"USD/JPY has broken back below 102 and is now flirting with a test of its 100‐day MA at 101.39. Volatility levels have dropped level, suggesting that the USD/JPY move is not risk induced but instead a reflection on going equity weakness and concerns over earnings and the ability for the BoJ to shift to a more aggressive policy in the spring."
"We would not fight the near‐term move; but expect that USD/JPY will eventually turn higher as the BoJ does move towards more aggressive policy. We hold a year‐end target of 109."
"USD/JPY short‐term technicals: mixed— signals shift between buy and sell— suggesting some uncertainty in markets."
Key Quotes:
"USD/JPY has broken back below 102 and is now flirting with a test of its 100‐day MA at 101.39. Volatility levels have dropped level, suggesting that the USD/JPY move is not risk induced but instead a reflection on going equity weakness and concerns over earnings and the ability for the BoJ to shift to a more aggressive policy in the spring."
"We would not fight the near‐term move; but expect that USD/JPY will eventually turn higher as the BoJ does move towards more aggressive policy. We hold a year‐end target of 109."
"USD/JPY short‐term technicals: mixed— signals shift between buy and sell— suggesting some uncertainty in markets."