FXStreet (Guatemala) – Analysts at TD Securities noted the shift in the Yen.
Key Quotes:
“After trading in a multi-month range, USDJPY has punched above the 123 level which is significant from a long-term point of view. We have for some time penciled in 123 and 125 as Q3 and Q4 targets but we think 125 is the next key level to watch out for; a breach above this would open significant upside potential that puts 135 on the radar.”
“Though we are long-term USD/JPY bulls, we think we will need to see sustained gains before breaking higher over the medium-term. Ultimately this will require central bank clarity either from the Federal Reserve or the Bank of Japan.”
“A delay in Fed policy liftoff to next year would be a significant risk to the USD/JPY bull-view but in the event that this does occur, we think the BoJ would be inclined to inject additional stimulus and reaffirm its commitment towards aggressive reflation policies. So, the balance of risk is still tilted towards a weaker JPY over the next 3 to 6 months.”
(Market News Provided by FXstreet)