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28 Jan 2015
Pressure on EU and US yields may continue to cap USD/JPY – KBC
FXStreet (Barcelona) - According to the KBC Bank Research Team, the ongoing downward pressure on core US and EU yields may continue to cap the upside on USD/JPY.
Key Quotes
“For USD/ JPY we maintain a cautious bias. The ongoing downward pressure on core USD/ EUR yields may continue to cap the topside. In addition, at some point, Asian/ Japanese equities might become nervous on the ‘competitive’ devaluations the likes of the EMU.”
“A risk-off correction might bring the yen in the picture.”
“EUR/JPY already cleared the EUR/JPY 134 support area and extensively tested the 131.22 support (Dec 2013 low + MT Neckline). Admittedly, the tension eased yesterday. The comparable range bottom in USD/JPY stands at 115.57. This level is still quite far away, but we keep an eye on it.”
Key Quotes
“For USD/ JPY we maintain a cautious bias. The ongoing downward pressure on core USD/ EUR yields may continue to cap the topside. In addition, at some point, Asian/ Japanese equities might become nervous on the ‘competitive’ devaluations the likes of the EMU.”
“A risk-off correction might bring the yen in the picture.”
“EUR/JPY already cleared the EUR/JPY 134 support area and extensively tested the 131.22 support (Dec 2013 low + MT Neckline). Admittedly, the tension eased yesterday. The comparable range bottom in USD/JPY stands at 115.57. This level is still quite far away, but we keep an eye on it.”