Browsing: Daily Look

The U.S. dollar is currently experiencing some weakness. What is the near-term outlook for USD/JPY?

Here is their view, courtesy of eFXdata:

MUFG Research discusses the USD outlook and sees a scope for USD/JPY to move lower in the near-term. MUFG is short USD/JPY* as its ToTW this week targeting a move towards 105.

The volatile nature of US dollar performance in recent months has made it even more challenging to forecast performance. There is scope for the current stage of US dollar weakness to extend further in the near-term although we would caution that one should not be complacent in believing the policy measures taken to date will result in a further retracement of USD strength,” MUFG notes.

“While we certainly do not believe we are necessarily through the worst of this crisis and see high risks of a renewed global equity market sell-off after the sharp gains recorded this week, we do suspect that the actions from the Federal Reserve will mute the scale of USD demand that would accompany any renewed risk sell-off. ..With the Fed having addressed USD liquidity issues, we see the path opening up for USD/JPY to grind back lower over the coming weeks,” MUFG 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.

Get the 5 most predictable currency pairs


A daily forex forecast for the upcoming events of the day that will impact forex trading ► These forex outlooks are published daily.

1 2 3 417