USD/JPY: Testing The Bottom Of The Trump Range; Whats

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Dollar/yen broke down on political worries and lost the 110 level. Could it extend the drop?

Here is their view, courtesy of eFXnews:

Societe Generale FX Strategy Research notes that the last year can be divided into two ranges for USD/JPY and US 10-year treasuries:

Pre-Trump, USD/JPY traded in a 98-108 range and 10s in a 1.31.8% range. Since mid-November, USD/JPY has traded in a 108-119 range, 10s in a 2.15-2.70 range. We are at the bottom of that range, in both FX and bond markets.

From here, SocGen prefers to be short yen than short Treasuries.

“Now that we’ve see a sizeable long position build-up in CFTC data, We’re more inclined to view this latest move as the last hurrah of the bond bulls, and fade it by staying long EUR/JPY and going long USD/JPY,” SocGen advises.

USD/JPY is trading circa 109.35 as of writing.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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