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USD/JPY may correct to 114.00 and 112.00 in the short-term – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst Omkar Godbole sees the BOJ rally slowing down in the short-term, and mentions the need for a rise in the treasury yields for a further push on the upside.

Key Quotes

“The USD/JPY pair rallied from 108.00 levels to 116.00 levels since Oct. 31 while the US Ten-year treasury yield remained largely in a range of 2.3% to 2.4%.”

“This is indicative of the fact that the rally in USD/JPY was almost entirely driven by the BOJ’s surprise stimulus. Hence it may have run its course, at least in the short-run.”

“A further upside move needs support from the rise in the treasury yields, which appears a difficult case in the short-term.”

“The pair is also overbought on daily as well as weekly charts.”

“To conclude - a correction up to 114 and 112 level cannot be ruled out in the short-term.”

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