JPY: What’s Up With USD/JPY? What’s The Trade? – TD

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The U.S. dollar has posted strong gains against the Japanese yen over the last few weeks. Is the yen really a safe-haven asset?

Here is their view, courtesy of eFXdata:

TD Research discusses the JPY outlook and suspects that USD/JPY is nearing a top alongside CHF/JPY around 114.

“We discuss JPY’s so-called global haven status. We feel it’s a misnomer that has more to do with Japanese repatriation. The GPIF has also likely been rebalancing foreign equity exposure ahead of yearend while the collapse in US equities has left them under-allocated to benchmarks,” TD notes.

“Our month-end positioning model leans short JPY, but we suspect that USDJPY is nearing a top alongside CHFJPY around 114,” TD adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.