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11 Mar 2013
Forex Flash: USD/JPY to hit 100? - BBH
Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that many participants have their sights set on USD/JPY 100 and 13,000 for the Nikkei.
However, he is skeptical that Abenomics will be able to push the Yen much lower. He writes, “To be sure, this is not to say the top is in place for the dollar, but that the bulk of the move is behind us and the market appears to have discounted more aggressive easing by the BOJ next month (large scale purchases of longer dated JGBs). We see no compelling technical evidence that a reversal is imminent. Previous resistance should now act as support and this is found in the JPY94.80-JPY95.20 area for the dollar.”
However, he is skeptical that Abenomics will be able to push the Yen much lower. He writes, “To be sure, this is not to say the top is in place for the dollar, but that the bulk of the move is behind us and the market appears to have discounted more aggressive easing by the BOJ next month (large scale purchases of longer dated JGBs). We see no compelling technical evidence that a reversal is imminent. Previous resistance should now act as support and this is found in the JPY94.80-JPY95.20 area for the dollar.”