- Analytics
- News and Tools
- Market News
- USD/JPY: Failure to test the 117.00 level is a clear bearish signal – MUFG
USD/JPY: Failure to test the 117.00 level is a clear bearish signal – MUFG
Analysts at MUFG Bank point out that assuming US dollar sentiment improves more broadly, some USD/JPY recovery is feasible but they consider the current correction could be a sign of the beginning of the end of the trend higher that began at the start of last year.
Key Quotes:
“Yields do continue to grind higher in Japan with today the 5-year JGB yield hitting - 0.015%, the highest level since the BoJ implemented its negative policy in January 2016. But the move is likely more a reflection of front-end rates in the US grinding higher than any fundamental shift in view in Japan. It will though along with the Reuters article create greater focus on the BoJ meeting next week.”
“The failure to test the 117.00 level is a clear bearish signal for USD/JPY. We had assumed dollar positive momentum would get us there before JPY recovery took hold. That failure and the fact that the market was short JPY means the prospect of a quick rebound is diminishing. We have long argued the case for a correction and it seems that has unfolded a little sooner than expected.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
