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Jul 07 - 10:55 AM

USD/JPY: Gradualist Approach Of The Fed Still Warrants A Buy On Dips - Credit Agricole

By eFXdata  —  Jul 07 - 09:30 AM

Credit Agricole CIB Research likes buying USD/JPY dips and maintains a long exposure in its portfolio targeting a move towards 115.

"Despite UST10Yyields hitting levels not seen since February, the USD advanced against everything save the JPY, where risk-off trading is putting the exchange rate under pressure," CACIB notes.

"The good news is that the US data continue to point to very gradual normalization of policy by the Fed, which in the medium-term is positive for sentiment. We continue to like buying the USD on dips against low yielders such as the JPY noting that USD/JPY will benefit from the gradual grind higher in UST yields on the back of the gradual normalization of monetary policy as well as the positive sentiment this gradualist approach generates," CACIB adds. 

Source:
Citi Research/Market Commentary

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