USD/JPY stays constructive medium term – Danske Bank
Chief Analyst at Danske Bank Allan von Mehren keeps the constructive view around the pair in the medium term.
“USD/JPY climbed higher yesterday supported by improved risk appetite”.
“While we maintain a constructive view on USD/JPY over the medium term horizon, a stretched short JPY positioning (the latest IMM data showed that speculative accounts added further JPY shorts in the week ending 14 November) combined with stretched positioning/pricing of risk premiums across asset classes, still represent a downside risk short term”.
“Tactically, we would consider buying USD/JPY on dips towards 111.65 (if the cross fails to break below this key technical support level) for a move towards 114”.