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1 Apr 2015
Stay long USD/JPY – JP Morgan
FXStreet (Edinburgh) - In the opinion of analysts at JP Morgan, the outlook for the pair remains tilted to the bullish side.
Key Quotes
“USD/JPY has behaved as a low-beta version of the dollar index over the past few months, which makes it one of the safer places for dollar bulls to sit out the current consolidation”.
“At the very least GPIF-related outflows should act as a flow backstop for the dollar, something that’s lacking in other dollar pairs”.
“Despite being low beta, USD/JPY remains more sensitive than other dollar pairs to US rates (this seeming paradox can be explained by the fact that the dollar index and US rates have diverged for much of this year), which should mean that USD/JPY doesn’t lag too badly should US rates get a lift from payrolls”.
Key Quotes
“USD/JPY has behaved as a low-beta version of the dollar index over the past few months, which makes it one of the safer places for dollar bulls to sit out the current consolidation”.
“At the very least GPIF-related outflows should act as a flow backstop for the dollar, something that’s lacking in other dollar pairs”.
“Despite being low beta, USD/JPY remains more sensitive than other dollar pairs to US rates (this seeming paradox can be explained by the fact that the dollar index and US rates have diverged for much of this year), which should mean that USD/JPY doesn’t lag too badly should US rates get a lift from payrolls”.