Daiwa Securities' senior currency strategist, Yukio Ishizuki, comments in note
The note was released a little earlier when the drop eclipsed the September 2017 lows of 107.32. Anyway, here is what was said:
- Downtrend likely to continue
- Break of 107.32 is very significant because if markets could have held above that, it may have helped reverse downtrend
- Next target is mid-106, but that won't provide powerful support, putting 105 levels in sight
- Short-term players and speculators are driving the move
- Market is one-sidedly betting on yen appreciation, so players don't need any reasoning; they are just riding the tide to sell the dollar
USD/JPY is now trading back up after that earlier plunge to lows of 106.84. Currently at 107.46 - back above the 2017 low mentioned, as the dollar recovers some poise and the pair found some demand under 107.00 earlier as well.
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