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8 Jul 2013
Flash: USD/JPY looks poised to retest 103.75 - BBH
FXstreet.com (Barcelona) - USD/JPY looks poised to advance further in the near-term, notes Marc Chandler, Global Head of Currency Strategy at BBH.
Chandler is projecting the USD/JPY at JPY102.50 now ahead of a retest of the recent high near JPY103.75. In the case of retracements in the pair, Chandler said "We envision buyers on dips to emerge near parity."
For USD/JPY, Chandler sees in the 10-year interest rate differential the most useful vehicle to gauge the next direction. Chandler underlines that "The US offered 105 bp more than Japan in late May and this increased by roughly 50 bp in response Bernanke's comments in late June and another 30 bp since; finishing last week at 186 bp, a two-year high."
Chandler is projecting the USD/JPY at JPY102.50 now ahead of a retest of the recent high near JPY103.75. In the case of retracements in the pair, Chandler said "We envision buyers on dips to emerge near parity."
For USD/JPY, Chandler sees in the 10-year interest rate differential the most useful vehicle to gauge the next direction. Chandler underlines that "The US offered 105 bp more than Japan in late May and this increased by roughly 50 bp in response Bernanke's comments in late June and another 30 bp since; finishing last week at 186 bp, a two-year high."