Mar 29, 2013
Forex Flash: USD/JPY medium-term direction remains higher – TD Securities
FXstreet.com (Barcelona) - TD Securities analysts think that current USD/JPY levels are over-extended and that a good deal of still pending BoJ easing is priced in to the market at current levels. However, “USD/JPY losses may be mitigated in the early stages of the New fiscal year if Japanese investors adjust (reduce) USD hedges for the coming fiscal year on the assumption that the JPY has further to fall – or if next week’s BoJ policy meeting manages to surprise”, wrote analyst Shaun Osborne. “We think the medium-term direction for USD/JPY remains higher but we don’t want to chase the USD up right here. Recent history suggests that the bull trend will moderate in the next few months and that the JPY may even regain a little more strength”, he added, looking for opportunities to buy USD dips.