JPY could strengthen soon
The Japanese Yen (JPY) has been on a losing streak against the US Dollar (USD) since 2011.
We think that the end is likely just around the corner.
The JPY appears to have completed or close to completing its 5-waves rally from the 2011 low
The upside could extend further from here but the downside risk is now a lot higher, comparatively speaking. The JPY has surpassed its 2007 high of 124.14 marginally, which was a potential ‘stopping’ point for this JPY move.
Coupled with the slowdown in momentum on both the weekly and daily scale, the JPY could soon see some strength all the way into the end of the year and into 2016.
A sharp drop below 123.78 would likely point the way to more strengthening in the JPY for the months to come, targeting 118.50-118.89 next.
Longer term, we would not be surprised if the JPY tested the psychological 100 level again.
If that is going to be the case, then companies with large exposure to JPY could soon reverse and may come under pressure in the months to come. (Read Report)
Source : CIMB Research
Labels: Forex, Technical Analysis