USDJPY View

From the FXWW Chatroom: On Monday TD Securities suggested that “the recent USD uptrend has nearly matured as markets appear to move away from “divergence”. This, along with a number of medium-term factors may challenge USDJPY’s beta to UST yields, but leave the JPY conflicted on crosses (EURJPY most notably). We sit short USDJPY as trade tensions intensify, the Trump discount returns & see a dovish reaction in UST yields to the Fed. The technical backdrop suggests a breakout is imminent, and view a move below 108 as bearish. 110.20 resistance is formidable; a move above is likely to be a false breakout and should be faded.”

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