FXStreet (Edinburgh) – Strategists from different banks shared their views on the pair following the recent fresh cycle tops above the 124.00 handle.
“According to our short-term financial models USD/JPY is currently significantly overbought, trading 1.5 standard deviation above fair value estimate of 120.90 and according to the relative strength index (RSI) the cross has also reached overbought territory, suggesting that the cross probably has increased a little too far a little too fast. Hence, the risk of further short-term corrections remains high with USD/JPY being very sensitive to negative news”, noted Flemming Nielsen at Danske Bank.
Derek Halpenny, Analyst at BTMU, added, “Given that the IMF is calling on the BOJ to ease its monetary stance again, we find it difficult to believe that the authorities in Tokyo are that worried about international opposition. Risks for USD/JPY over the short-term remain to the upside with the US employment report next Friday crucial in determining whether this move will prove sustainable. We are optimistic that US jobs growth will remain robust”.
“USDJPY has punched above a key long-term resistance level, but we think sustained gains over the medium are required to significantly push the pair higher from here (with135 lurking on the radar). We do not think this is an imminent risk but it does ultimately hinge on Fed/BoJ policy; we concede the balance of risk is growing that JPY weakness could persist for much longer”, concluded strategists at TD Securities.
Strategists from different banks shared their views on the pair following the recent fresh cycle tops above the 124.00 handle…
(Market News Provided by FXstreet)