On Wednesday, Jan 7, analysts at Bank of America Merrill Lynch put out a recommendation to buy USD/JPY at around 119.50.
They have a stop at 118.03 and a target at 124.59.
With spot at 118.29, it’s getting down to the nitty gritty. The good news is that USD/JPY has found good buyers ahead of 118.00 on two occasions. The bad news is that an ability to springboard from those lows is a troubling sign.
But with a risk of a 30-pip loss, it’s not the worst idea.
USD/JPY 30 minute chart
Separately, BAML remains bearish EUR/USD (who isn’t?) and is looking for a move down to 1.1749 initially and then all the way to 1.02. They struggle to envision a break above 1.20.
