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19 May 2014
JPY – in favour? – Rabobank
FXStreet (Guatemala) - The t-note-JGB yield spread may not always be a reliable forward indicator for USD/JPY.
Key Quotes:
“The relative performance of long term interest rates can frequently be relied upon to provide some direction for the FX market.”
“It follows that the recent downward pressure on US treasury yields has provided some encouragement for a bearish view on USD/JPY”.
“From a technical perspective the fact that USD/JPY has just broken below the 200 day sma at Y101.23 signals the potential for a deeper correction lower”.
Key Quotes:
“The relative performance of long term interest rates can frequently be relied upon to provide some direction for the FX market.”
“It follows that the recent downward pressure on US treasury yields has provided some encouragement for a bearish view on USD/JPY”.
“From a technical perspective the fact that USD/JPY has just broken below the 200 day sma at Y101.23 signals the potential for a deeper correction lower”.