17 Mar 2015
Stay long USD/JPY – JPM
FXStreet (Barcelona) - The J.P.Morgan Team maintain a bullish outlook on USD/JPY, explaining that the pair will remain supported by the fact that speculative length in the pair has been pared to a two-year low.
Key Quotes
“The performance of USD/JPY has been steady rather than spectacular since payrolls. This is in keeping with the pattern of the last few years whereby the beta between USD/JPY and the dollar index has fluctuated substantially, peaking not surprisingly at the time of landmark BoJ decisions and subsiding thereafter.”
“At present USD/JPY should be regarded as a low rather than high beta version of the dollar index.”
“If the dollar was less overvalued relative to the Fed cycle there would be little point owning such a low-beta dollar pair. But with the dollar looking very stretched relative to the Fed cycle, we are prepared to sacrifice some upside to minimise our exposure to a dollar correction.”
“All told USD/JPY should be pretty well supported by the fact that speculative length in the pair has been pared to a two-year low.”
“Bought USD/JPY 6h March at 120.9. Marked at 0.22%.”
Key Quotes
“The performance of USD/JPY has been steady rather than spectacular since payrolls. This is in keeping with the pattern of the last few years whereby the beta between USD/JPY and the dollar index has fluctuated substantially, peaking not surprisingly at the time of landmark BoJ decisions and subsiding thereafter.”
“At present USD/JPY should be regarded as a low rather than high beta version of the dollar index.”
“If the dollar was less overvalued relative to the Fed cycle there would be little point owning such a low-beta dollar pair. But with the dollar looking very stretched relative to the Fed cycle, we are prepared to sacrifice some upside to minimise our exposure to a dollar correction.”
“All told USD/JPY should be pretty well supported by the fact that speculative length in the pair has been pared to a two-year low.”
“Bought USD/JPY 6h March at 120.9. Marked at 0.22%.”