The Japanese yen is pushing pressure on the US dollar. What is the technical outlook for the pair in the near-term?
Here is their view, courtesy of eFXdata:
Citi discusses USD/JPY outlook and flags a scope for further downside in the near-term.
“CitiFX Strategy continues to see scope for USDJPY downside given the pair’s close relationship to US yields, which could further be supported by a potential shift in exporter hedging targets,” Citi notes.
“CitiFX Technicals also notes: After 3 days of testing, USDJPY looks to have conclusively failed at the 55 day moving average (106.95) and turned lower. Initial support at 106.47 has also given way.
It now looks like an evening star on the daily chart, suggesting a top may be in. Daily momentum is also turning lower from similar levels seen at the 109.85 June high. Thus we could see a return to the recent low at 104.18,” Citi adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
