Barclay’s analysts are highlighting a potential short scenario unfolding on the USD/JPY, and according to the investment bank, fundamental support for the Japanese Yen are going to time well with potential shortfalls on the US Dollar.
Key highlights
Yen short positions have largely been unwound according to Commitment of Traders reports.
JPY is being supported on trade war issues.
The Bank of Japan (BoJ) will be having a key meeting next week, expected to be Yen-positive.
US-Japan trade discussions expected to weigh on risk sentiment, bolstering the Yen.
Barclays is short the USD/JPY targeting 108.10, with a stop limit at 113.40.
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