#USDJPY @ 139.917 USDJPY: The door is open for a move towards 133.10 – Credit Suisse
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Economists at Credit Suisse now target USDJPY at 138.00 by the end of the fourth quarter. But a move to the 133.10 mark is on the cards.
“Although the market has done a lot of work already in terms of pricing in only a 50 bps Fed hike in December, players will worry that the terminal rate can come still lower from current levels around 4.85%, towards 4.50%, if a second successive downside US core CPI surprise is seen next month. This leaves still more positioning vulnerability potentially exposed in coming weeks and brings us to set our end-Q4 USDJPY target at 138.00.”
“We assume this leaves open the door for a move towards 133.10, the 38.2% retracement of the 2021-22 USDJPY rally which also lies close to its 200-Day Moving Average.”
“We suspect levels around 143.00 will act as resistance for now.”
[/s2If]
Join Our Telegram Group
