FXStreet (Edinburgh) – In the opinion of strategists at TD Securities, the next significant level in the pair will be the 125.00 handle.
Key Quotes
“We think we need to see sustained gains before USDJPY breaks out significantly higher from here however”.
“We think the key level to watch out for is 125 (our longstanding end of year forecast), still a little ways off but a break above here would open up significant upside potential that puts 135 on the radar”.
“The data this week is expected to tilt on the positive side (including inflation) so we think USDJPY could be prone to a little downside and should offer up a better entry level”.
“Ultimately however, the USDJPY view is entirely a play on central bank policy divergence and we think that the market is still under exposed to the short JPY side (according to CFTC data) and suggests that it is worth taking a punt on a long USDJPY position here”.
(Market News Provided by FXstreet)