USD/JPY: Close above 118.00 could signal a bottom – BBH
By FXStreet FXStreet (Córdoba) – According to analysts from Brown Brother Harriman, USD/JPY gave signals that could have bottomed but more is needed.
Key Quotes:
“While the euro often carves out a bottom, the dollar’s lows against the yen are frequently characterized by spikes. That was the case, for example in the middle of October and late-August and the low (~JPY115.60) in December 2014. Such a spike may have been recorded yesterday. A close above JPY118 would boost confidence that a low is in place. However, much technical damage has been inflicted. It may take a move back through the JPY118.70-JPY119.15 band to be anything significant.”
“The yen’s sensitivity to global financial market disturbances and the fact that equity markets remain on edge despite today’s better showing means that many short and medium term participants may not want to be exposed to a short yen until they have greater confidence that China is stabilizing. “
“Although speculators, as of a week ago, had the first net long yen position in the futures market in three years, we are still skeptical that safe haven is really the best way to describe or explain the yen’s strength. Instead, we suspect that …read more
Source:: FX Street
