USD/JPY: Consolidation opening up a path higher – MUFG
Analysts at MUFG Bank, explain the trade idea of a long USD/JPY position at 110.10 with a target at 112.00 and a stop loss at 109.00.
“One risk to this trade idea is a sudden escalation in trade conflict between the US and the EU. However, while EU Trade Commissioner Phil Hogan suggested differences with the US are numerous, he also held out hope that discussion in the coming weeks can forestall an escalation.”
“Technically, USD/JPY has just breached the long-term downtrend from the 2015 high above 125.00 and the highs in 2018 and if these levels hold the technical picture would reinforce the fundamental backdrop.”