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26 May 2014
Long USD/JPY mid term - RBS
FXStreet (Bali) - According to Greg Gibbs, FX Strategist at RBS, it is worth establishing long positions in USD/JPY at current levels, from a mid term view.
Key Quotes
"The USD/JPY price action has been more encouraging in recent days, although there is still a bit of work to do to shake off the bearish tone of the last month. It is important that it held above the low in Feb around 100.75. In our view, it is worth establishing long positions again for the medium term with a view that it holds the 100/101 supports."
"Key reports will be out in Japan on Friday, including the CPI and employment data. The USD/JPY should be relatively unresponsive to the data, in our view. Weak data increases pressure on the BoJ to further enhance its QQE. Strong data might increase inflation expectations in Japan and point to lower real yields as Japan continues to pursue its existing QQE policy for the foreseeable future. As such, both outcomes might point to a weaker JPY."
Key Quotes
"The USD/JPY price action has been more encouraging in recent days, although there is still a bit of work to do to shake off the bearish tone of the last month. It is important that it held above the low in Feb around 100.75. In our view, it is worth establishing long positions again for the medium term with a view that it holds the 100/101 supports."
"Key reports will be out in Japan on Friday, including the CPI and employment data. The USD/JPY should be relatively unresponsive to the data, in our view. Weak data increases pressure on the BoJ to further enhance its QQE. Strong data might increase inflation expectations in Japan and point to lower real yields as Japan continues to pursue its existing QQE policy for the foreseeable future. As such, both outcomes might point to a weaker JPY."