Economists at MUFG Bank highlight a number of factors that suggest caution is warranted over the scale of further moves higher in USD/JPY. Key quotes “The downward trendline from the 2015 peak and the peak last year comes in between 109.00-109.30 over the coming weeks and is likely to be tough to break.” “TFX retail margin flow data indicate heavy selling into this rally which could become a bigger influence on the approach of this technical level and the psychologically important 110.00 level.” “If US yields do rise further, we believe two factors would unfold that would limit the upside. The first would likely be increased equity market selling, which would go global thus increasing risk aversion and bringing back some support for JPY. Then in addition, the Fed would likely become more explicit in countering further moves higher in yields.” “If as we expect, global growth picks up, the huge US financing needs coupled with the widening US current account deficit plus the still deeply negative level of real yields will see this US dollar rally peter out and renewed US dollar depreciation will unfold.” 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 Gold Price Analysis: Strong support for XAU/USD is located at $1,680 FX Street 1 year Economists at MUFG Bank highlight a number of factors that suggest caution is warranted over the scale of further moves higher in USD/JPY. Key quotes "The downward trendline from the 2015 peak and the peak last year comes in between 109.00-109.30 over the coming weeks and is likely to be tough to break." "TFX retail margin flow data indicate heavy selling into this rally which could become a bigger influence on the approach of this technical level and the psychologically important 110.00 level." "If US yields do rise further, we believe two factors would unfold that would limit the upside.… Regulated 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.
