Deutsche Bank on where to buy and sell USDJPY
DB has been looking at the "rapid rally" in USDJPY and they’ve picked their spots to buy and sell.
. The cause could be any of several factors, such as questions over the viability of US policies or politics, a weakening in emerging market or resource price trends leading to a high dollar, recurring concerns on China’s capital outflow, or political uncertainties with major EU elections. On the other hand, we feel that the rally, though led largely by expectations, has not fully discounted the policies of the incoming Trump government, which remain highly indeterminate. As such, we believe the USD/JPY still has ample upside once Donald Trump takes office.