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12 Aug 2013
Flash: USD/JPY retest of 97.00 would lead to constructive view – BBH
FXstreet.com (New York) - The BBH Global Currency Strategy Team analyses the short-term outlook of the USD/JPY and GBP/USD.
Key quotes
“The GBP/USD stalled in front of 1.56 though it flirted with the downtrend line draw off the early January high and the mid-June high, but has not closed above it.”
“It comes in near 1.5550 (coinciding with the 200-day moving average is 1.5535) on Monday and drops about 5 ticks a day. Given the magnitude of the advance, GBP/USD can slip a little below 1.5400 without signaling an important top is in place.”
“The USD has ground lower against the JPY and traded below 96.0 for the first time since mid-June. While there is not compelling evidence that a low is in place, we think there is a reasonable chance that the greenback will begin stabilizing after falling about 4% last pre-jobs data high. A move above 97.00 lends credence to this somewhat more constructive view.”
Key quotes
“The GBP/USD stalled in front of 1.56 though it flirted with the downtrend line draw off the early January high and the mid-June high, but has not closed above it.”
“It comes in near 1.5550 (coinciding with the 200-day moving average is 1.5535) on Monday and drops about 5 ticks a day. Given the magnitude of the advance, GBP/USD can slip a little below 1.5400 without signaling an important top is in place.”
“The USD has ground lower against the JPY and traded below 96.0 for the first time since mid-June. While there is not compelling evidence that a low is in place, we think there is a reasonable chance that the greenback will begin stabilizing after falling about 4% last pre-jobs data high. A move above 97.00 lends credence to this somewhat more constructive view.”