The USD/JPY may continue to rise amid expectations for aggressive easing under a new Japanese government leadership, says a senior dealer at a major Japanese bank. He tips the USD/JPY in a 80.70-81.30 range; the pair is at 81.11. If the topside is breached, the pair could target 82.00, he says. With the general election looming, Japan's main opposition party leader Abe calls for aggressive BOJ easing steps. The USD/JPY's recent gains also reflect a broader change in supply and demand such as increasing Japan's trade deficits, the dealer says. "That is the basis," he says. "Abe is merely a trigger." Meanwhile, the EUR is less sensitive than before to negative euro-zone developments, he says. Data showed Thursday the euro-zone economy contracted in 3Q. The EUR/USD may trade in a 1.2740-1.2800 range, he says; the pair is currently at 1.2781. The EUR/JPY is tipped in a 102.80-104.10 band. The cross is at 103.67.
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