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Credit Agricole: USD/JPY Short-term positioning circuit breaker – eFXnews

FXStreet (Barcelona) - The eFXnews team, note Credit Agricole sees a short-term correction ahead for the USD/JPY pair towards 116.50 level.

Key Quotes

“However with the market already at an extreme short JPY position, we think a circuit-breaker could be tripped this week seeing at least a short-term USD/JPY correction towards 116.50.”

“While the magnitude of such a correction may seem small given the pace of recent USD/JPY gains, we note many buyers are unlikely to wait too long to add to positions given uncertainty surrounding December the elections."

"As such after this correction, JPY selling should resume seeing USD/JPY rise to our end-of-year 118.0 target.”

“Note also that while a government debt downgrade remains risk, any rating agency action is unlikely to come before the elections.”

This content has been provided under specific arrangement with eFXnews.

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