TD analysts on the yen, some broief snippets from a longer piece.
First, on monetary policy divergence between the Federal Reserve and Bank of Japan:
- With the Fed ceding leadership on policy to the ECB and the BoJ, JPY trading bias remains asymmetric and with considerable room for gains.
Targeting:
- We expect USD/JPY to register a 120-125 handle this quarter
- We think rallies to 133/134 in will make for an attractive short
Meanwhile, on EUR/yen:.”
- We are biased to appreciable strategic EUR/JPY downside towards 130 in the coming months
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ps. previewing today and the BOJ meeting this week:
Bottom pickers on USD/JPY are having a really tough time:
