One of the key aspects to have a bearish EUR/JPY view for analysts at TD Securities is that the broad USD will remain firm over the coming months.
Key quotes
“The current account composition (which will get worse for the EU and makes the EUR very much exposed to a deterioration in trade and impaired supply chians) and our bullish USD view are the reasons to have a bearish bias on EUR/JPY.”
“The 115.87/116.03 area has marked critical support for the EUR/JPY pair.”
“As long as US real yields remain suppressed, then the path of least resistance for EUR/JPY is lower. We think a return to the 2016 lows towards 110/112 is likely.”
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