Back
10 Mar 2014
Flash: USD overstretched against JPY - BBH
FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that the dollar is over-stretched against the yen.
Key Quotes
“At its high, the dollar was nearly 3 standard deviations away from its 20-day moving average (~JPY103.55). The top of the Bollinger Band comes in near JPY103.10. By this measure, the dollar is the most stretched against the yen as it has been in years, including the earlier run-up in anticipation of Abenomics beginning in late-2012.”
“We had suggested dollar potential into the JPY103.10-65 band, and now that it has reached it, we suspect a consoldative phase is near, especially if we are correct about the larger investment climate. Initial support for the dollar is pegged near JPY102.80-JPY103.10 now, with additional support near JPY102.50.”
Key Quotes
“At its high, the dollar was nearly 3 standard deviations away from its 20-day moving average (~JPY103.55). The top of the Bollinger Band comes in near JPY103.10. By this measure, the dollar is the most stretched against the yen as it has been in years, including the earlier run-up in anticipation of Abenomics beginning in late-2012.”
“We had suggested dollar potential into the JPY103.10-65 band, and now that it has reached it, we suspect a consoldative phase is near, especially if we are correct about the larger investment climate. Initial support for the dollar is pegged near JPY102.80-JPY103.10 now, with additional support near JPY102.50.”