26 May 2014
Current levels appropriate to hold long USD/JPY - RBS
FXStreet (Bali) - BoJ's Kuroda has stepped up the charm offensive it seems to defend the USD/JPY near 100, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"While he is increasing pressure on the Abe government to speed up reform, he is not linking BoJ policy to more government action and sees merit in achieving its inflation goal regardless of government policy."
"We continue to see medium-term JPY weakness and view current levels as appropriate to hold long USD/JPY positions. The rise of euro-sceptic parties in the EU elections would subtly increase pressure on the ECB to deliver on policy easing. We continue to see EUR downside potential."
Key Quotes
"While he is increasing pressure on the Abe government to speed up reform, he is not linking BoJ policy to more government action and sees merit in achieving its inflation goal regardless of government policy."
"We continue to see medium-term JPY weakness and view current levels as appropriate to hold long USD/JPY positions. The rise of euro-sceptic parties in the EU elections would subtly increase pressure on the ECB to deliver on policy easing. We continue to see EUR downside potential."