$USDJPY still within the 117.74-120.83 range - Scotiabank
Topic: $USDJPY still within the 117.74-120.83 range - Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that USD/JPY still trades within its almost month long range of 117.74-120.83, expecting the pair to move higher post periods of risk aversion.
“USDJPY is higher, but immaterially so and still trading within its almost one month range of 117.74 to 120.83 or slightly broader range of 115.57 to 120.83.”
“Rumours into the open are that the BoJ will see the fall in oil prices as a risk to its CPI forecast and target, but a positive impact for GDP. The next BoJ meeting is January 20th, however we do not expect any surprises.”
“We expect USDJPY to be driven higher over time but interrupted by periods of risk aversion.”
“USDJPY short-term technicals: bearish—signals have shifted to bearish USDJPY, with a natural target at 116.30. Accordingly, for near-term traders we are biased to be short USDJPY.”