EUR/JPY: Initiating a short – TDS
Gloomy economic data expected from the European Union alongside confidence in the Japanese yuan are the reasons mentioned by strategists at TD Securities to add short in the EUR/JPY pair.
“This week's spate of EU data should provide a crude reminder that the Eurozone continues to contend in the ditch. We forecast German GDP to be flat in Q4.”
“EURUSD's near-term path of least resistance is lower. 1.0879/1.0925 will be the key pivot zone of support for the pair.”
“We opt to add JPY long exposure. The JPY remains one of the most prevalent currencies among crosses and its beta to US equity market gyrations.”
“We add EUR/JPY short to our TOTW portfolio reflecting our tactical bearishness on the EUR.”