Analysts at TD Securities explained that they closed their USD/JPY short in our FX Model Portfolio after the stop-loss was triggered for a loss of ~2.4%. Key Quotes: “We initiated this trade on the basis that trade tensions would worsen and undermine risk sentiment, both of which would weigh on 10yr UST yields. While this narrative largely played out, USDJPY has broken away from traditional correlation structures and has pushed higher instead.” “Indeed, our HFFV estimate suggests USDJPY should be trading closer to 109. Nonetheless, the JPY appears to be trading in sympathy with the pain observed in Asian FX (see ADXY chart). We do not see trade tensions de-escalating anytime soon leaving conviction to lean against the USD tide in the tactical sense low for now following a break of technical trend resistance located near 111.60/80 (established from the 2015 highs).” “Though we think the breakdown in cross-asset correlations will not hold indefinitely, a break through technical resistance may exacerbate near-term positioning risks to the topside. This augurs for patience before fading the recent USDJPY upleg. For now, we hold a preference to express trade risks through CAD shorts.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD Technical Analysis: USD/CAD bulls en route to best daily close since mid-June FX Street 4 years Analysts at TD Securities explained that they closed their USD/JPY short in our FX Model Portfolio after the stop-loss was triggered for a loss of ~2.4%. Key Quotes: "We initiated this trade on the basis that trade tensions would worsen and undermine risk sentiment, both of which would weigh on 10yr UST yields. While this narrative largely played out, USDJPY has broken away from traditional correlation structures and has pushed higher instead." "Indeed, our HFFV estimate suggests USDJPY should be trading closer to 109. Nonetheless, the JPY appears to be trading in sympathy with the pain observed in Asian FX… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.