BNP says it opened a USD/JPY long today
- Long at 103.20
- Stop at 101.50
- Profit target is 107.00
(What do I always say about round numbers? ….)
BNP cites:
- “We expect a rebound in US yields to support the currency pair”
- “Our interest rate strategists expect a recovery to 70bps and 3.0% respectively,” (for 2s and 10s), which should “provide substantial support for dollar-yen”
- “Monetary expansion and portfolio outflows” are likely to weigh on the yen
BNP’s target for USD/JPY at the end of 2014 is 110.00
