TD Research discusses JPY outlook and stays neutral on USD/JPY in the near-term, while maintains a structural bearish bias on EUR/JPY over the medium-term.
"We think USDJPY's consolidation is starting to become a bit matured. We have looked at a 107/109 as the range to play in the short-term. The upper bound coincides with the 200dma (~109.17) and we think this will offer notable resistance in what has otherwise been a trendless G10FX market," TD notes.
"We are also placing a closer eye on EURJPY, which we think has room to run strategically lower in the next several months," TD adds.