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Oct 12, 2015
USD/JPY: strong move on the cards? – BBH
FXStreet (Edinburgh) - The research team at BBH has assessed the recent consolidative pattern in USD/JPY.
Key Quotes
“The dollar recorded its highs against the yen four months ago near JPY125.40”.
“On August 24, it crashed to around JPY116.20 and has been in a new range since between JPY118.60 and JPY121.60”.
“The implied volatility (three-month) fell below 9.2% before the weekend, the lowest level in two months. While we suspect the coil may continue in the near-term, it is setting the stage for a potentially powerful move”.
“Nevertheless, our analysis leads us to conclude that this is a market correction, not a reversal of the underlying trends”.
Key Quotes
“The dollar recorded its highs against the yen four months ago near JPY125.40”.
“On August 24, it crashed to around JPY116.20 and has been in a new range since between JPY118.60 and JPY121.60”.
“The implied volatility (three-month) fell below 9.2% before the weekend, the lowest level in two months. While we suspect the coil may continue in the near-term, it is setting the stage for a potentially powerful move”.
“Nevertheless, our analysis leads us to conclude that this is a market correction, not a reversal of the underlying trends”.