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26 Apr 2013
Forex Flash: USD/JPY deeper retraction could be in the cards - TD Securities
FXstreet.com (Córdoba) - USD/JPY has hovered just below the psychological 100 barrier all week, "but the inability to breach that level—particularly on the main JPY event risk of the week (BoJ)—means a deeper retraction could be in the cards", says the TD Securities analyst team.
"The modest risk off feel to markets broadly this morning is also JPY positive, and could help that move", they comment. "On the daily chart for USD/JPY, the upper 96 area is the nearest decent support before 95—those are reasonable targets for the coming days".
As a tactical position, TD Securities prefer selling the commodity crosses with the JPY, "all of which should see sharp moves lower if the risk sentiment sours".
"The modest risk off feel to markets broadly this morning is also JPY positive, and could help that move", they comment. "On the daily chart for USD/JPY, the upper 96 area is the nearest decent support before 95—those are reasonable targets for the coming days".
As a tactical position, TD Securities prefer selling the commodity crosses with the JPY, "all of which should see sharp moves lower if the risk sentiment sours".