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22 Apr 2015
USD/JPY stuck in a narrow range – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, maintains a long-term bullish outlook on USD/JPY, noting that the pair remains slave to broad based USD moves.
Key Quotes
“JPY trades within narrow range, stuck between its 50 and 100-day moving averages (119.80 and 119.31, respectively). Japanese trade data was mixed, the trade balance shifted into surplus, with exports rising 8.5%y/y but imports are soft, falling –14.5%y/y. Most of the focus for Japan was on the building Nikkei rally, with the index reaching fresh 20-year highs, above 20000.”
“The outlook for USDJPY continues to be contained by the broad USD move, risk aversion and soft Japanese fundamentals. We hold a USDJPY year-end target of 125.”
Key Quotes
“JPY trades within narrow range, stuck between its 50 and 100-day moving averages (119.80 and 119.31, respectively). Japanese trade data was mixed, the trade balance shifted into surplus, with exports rising 8.5%y/y but imports are soft, falling –14.5%y/y. Most of the focus for Japan was on the building Nikkei rally, with the index reaching fresh 20-year highs, above 20000.”
“The outlook for USDJPY continues to be contained by the broad USD move, risk aversion and soft Japanese fundamentals. We hold a USDJPY year-end target of 125.”