12 May 2015
USD/JPY strong resistance at 120.80/121.20 – Westpac
FXStreet (Edinburgh) - In the view of strategists at Westpac, the area of 120.80/121.20 remains a strong barrier for USD/JPY.
Key Quotes
“At the risk of moving well beyond the point of being considered boring, we remain of the view that USD/JPY is in a range trade, that dips are still an opportunity to buy and that dips are 118.50 or below”.
“The rapid rise in global bond yields/ steepening in Asian NDF curves is flashing warning signals for us, warning signals that a bout of risk aversion may be ahead”.
“AUD/JPY has a double top at 96.00, EUR/ JPY is making 2 month highs. USD/JPY and yen crosses look expensive to us here, so we are not inclined to step up. So we remain neutral for yet another week”.
“Dips held around multiple lows down to 118.33 in the recent weeks. Mild short term upside bias. Resistance remains firm towards 120.80/121.20”.
Key Quotes
“At the risk of moving well beyond the point of being considered boring, we remain of the view that USD/JPY is in a range trade, that dips are still an opportunity to buy and that dips are 118.50 or below”.
“The rapid rise in global bond yields/ steepening in Asian NDF curves is flashing warning signals for us, warning signals that a bout of risk aversion may be ahead”.
“AUD/JPY has a double top at 96.00, EUR/ JPY is making 2 month highs. USD/JPY and yen crosses look expensive to us here, so we are not inclined to step up. So we remain neutral for yet another week”.
“Dips held around multiple lows down to 118.33 in the recent weeks. Mild short term upside bias. Resistance remains firm towards 120.80/121.20”.