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Jan 10 - 01:24 PM
USD/JPY: Stars Aligning For A Further Move Higher S/T; A Break Above 110 To Squeeze Shorts - MUFG
First appeared on eFXplus on Jan 10 - 09:48 AM

MUFG Research discusses USD/JPY tactical outlook and sees a scope for further gains with a break above 110 reinforcing the move higher via some squeeze of short positions. 

"In our view the stars are aligning in favour of a further move higher in USD/JPY over the short-term. The more resilient US economy, the probable de-escalation in Middle East tensions; favourable monetary conditions and the imminent signing of the US-China Phase 1 trade deal all suggest breaking higher to levels not seen since May of last year," MUFG notes. 

"Margin trading flows in Japan show increased USD/JPY selling above the 109.00 level and if a break above the 110.00 level materialises, some squeeze of short positions could reinforce USD/JPY higher," MUFG adds. 

Source:
MUFG Research/Market Commentary

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