13 Dec 2013
Flash: USD/JPY a popular short - TDS
FXstreet.com (London) - Strategists at TD Securities said the short JPY trade is a popular, and well-populated, trade so we are sensitive to short-term price signals which (like today’s) might signal some weakness or a temporary reversal in the USDJPY rally.
Key Quotes:
“We note, however, that the recent run up in the USD looks “internally” well-structured and it retains a lot of underlying dynamism across a range of timeframes”.
“USDJPY weakness should remain relatively contained. The overall picture here is one of a market that rallied hard in the first half of the year and essentially consolidated through the second; the break higher from the triangle consolidation on the weekly chart in November (securing a monthly close above the 100 point that we wanted to see to sustain the bull trend) points to a repeat of the 77/103 rally”.
“We are bullish in the medium-term but we would prefer to get long nearer 100”.
Key Quotes:
“We note, however, that the recent run up in the USD looks “internally” well-structured and it retains a lot of underlying dynamism across a range of timeframes”.
“USDJPY weakness should remain relatively contained. The overall picture here is one of a market that rallied hard in the first half of the year and essentially consolidated through the second; the break higher from the triangle consolidation on the weekly chart in November (securing a monthly close above the 100 point that we wanted to see to sustain the bull trend) points to a repeat of the 77/103 rally”.
“We are bullish in the medium-term but we would prefer to get long nearer 100”.