6 Feb 2014
Flash: USD/JPY may be ready to target 103.00 - RBS
FXStreet (Bali) - According to Greg Gibbs, FX Trading Strategist at RBS, USD/JPY may be ready for a recovery to near 103.00.
Key Quotes
"After a sizeable sell off in emerging markets, discerning investors are likely to seek out those that have shown recent economic improvement or have made some steps to address structural weakness. Many economies have shown improved activity data recently, and it may take time for a weaker outlook in China to build further."
"US yields have built in a weaker US growth outlook and there is less potential for weaker US data (payrolls) to drive yields much lower. Yellen is still likely to be balanced next week and express confidence in a steady US recovery."
"USD/JPY has held recent lows on three occasions this week and may be ready for a recovery to near 103 along with more stable EM markets.GBP-USD The UK Jan services PMI disappointed at 58.3, tripping the GBP-USD temporarily below 1.6300 before the pair recovered into end-NY. Look towards the BOE MPC later today (1200 GMT) for further cues and as noted previously, if 1.6300 is violated, the 100-day MA (1.62555) may beckon."
Key Quotes
"After a sizeable sell off in emerging markets, discerning investors are likely to seek out those that have shown recent economic improvement or have made some steps to address structural weakness. Many economies have shown improved activity data recently, and it may take time for a weaker outlook in China to build further."
"US yields have built in a weaker US growth outlook and there is less potential for weaker US data (payrolls) to drive yields much lower. Yellen is still likely to be balanced next week and express confidence in a steady US recovery."
"USD/JPY has held recent lows on three occasions this week and may be ready for a recovery to near 103 along with more stable EM markets.GBP-USD The UK Jan services PMI disappointed at 58.3, tripping the GBP-USD temporarily below 1.6300 before the pair recovered into end-NY. Look towards the BOE MPC later today (1200 GMT) for further cues and as noted previously, if 1.6300 is violated, the 100-day MA (1.62555) may beckon."