19 Dec 2014
USD/JPY: Caution getting long here - BTMU
FXStreet (Guatemala) - Derek Halpenny, analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the corrective phase for the USD/JPY rate looks complete already and USD/JPY is higher again today in line with the strength of equity markets.
“All of Asia is performing well with the Topix up 2.4% following a similar gain in the US yesterday”.
“Confidence has been helped by the rouble trading a little more stably over the last couple of trading sessions although this could easily turn quickly again”.
“Beyond that though it is hard to cite any clear catalyst for the upturn in investor sentiment which suggests to us that this equity market rally might not be on the strongest of footings”.
“While the rebound in USD/JPY has been impressive, we’d be cautious buying at these levels just ahead of the 120.00 level”.
“All of Asia is performing well with the Topix up 2.4% following a similar gain in the US yesterday”.
“Confidence has been helped by the rouble trading a little more stably over the last couple of trading sessions although this could easily turn quickly again”.
“Beyond that though it is hard to cite any clear catalyst for the upturn in investor sentiment which suggests to us that this equity market rally might not be on the strongest of footings”.
“While the rebound in USD/JPY has been impressive, we’d be cautious buying at these levels just ahead of the 120.00 level”.