21 Jul 2014
JPY retains bullish bias short term - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that they expect that the JPY is still on course for softening vs. the USD over the medium-term as the progression of Fed tapering highlights the extremely accommodative position of the BoJ.
Key Quotes:
“However, near-term the readjustment in expectations regarding the outlook for the AUD, NZD and the EUR could be providing additional support for the yen”.
“Layered on top of the prevailing geopolitical risks and the adjustments to BoJ policy expectations, there would appear to be good reason to expect the JPY to maintain a firm profile near-term”.
“We see scope for AUD/JPY to push towards the 93.60 area by year end. Near-term support should be offered by the 100 day sma at 94.88, then the July 18 low at 94.36”.
Key Quotes:
“However, near-term the readjustment in expectations regarding the outlook for the AUD, NZD and the EUR could be providing additional support for the yen”.
“Layered on top of the prevailing geopolitical risks and the adjustments to BoJ policy expectations, there would appear to be good reason to expect the JPY to maintain a firm profile near-term”.
“We see scope for AUD/JPY to push towards the 93.60 area by year end. Near-term support should be offered by the 100 day sma at 94.88, then the July 18 low at 94.36”.