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Aug 22 - 06:55 AM

USD/JPY - Is The Least Appealing Short Position

By Jeremy Boulton  —  Aug 22 - 04:50 AM
  • USD/JPY dived from near 162 toward 141 so traders sold short

  • Interest rates influencing USD/JPY exert huge upside force

  • BOJ plans to buy more bonds weighing yen

  • U.S. cenbank is reducing its balance sheet - supporting USD

  • Japan inc sees USD/JPY average around 142-144 current FY which ends March

  • One-year USD/JPY forward swap is 613 pips favour USD

  • Correction target for long-term uptrend is 139.28

  • Dip buyers can reap big carry with much diminished FX risk

  • Expectations driving dollar down seem unrealistic nL1N3K9099

Source:
Refinitiv IFR Research/Market Commentary

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