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27 Feb 2013
Forex Flash: USD/JPY down on recapitulation in global risk appetite - OCBC Bank
Emmanuel Ng of OCBC Bank notes that in the near term, a further recapitulation in global risk appetite levels may tip USD/JPY lower (watch the JPY-crosses) in the near term despite his structural bearish bias for the currency
He feels that if 91.39 is perforated, a subsequent drift towards 90.00 and then the 55-day MA (89.48) we think cannot be discounted. Shifting focus to AUD/USD he comments that his view for the pair remains unchanged and with positive risk appetite subsiding, it may also remain on fragile ground in the current environment. He writes, “With little inclination in the past few sessions to re-challenge the 1.0300 level, we stay on a sell-rally posture for the pair for now with the 1.0200 support perceived to be at risk before 1.0150.”
He feels that if 91.39 is perforated, a subsequent drift towards 90.00 and then the 55-day MA (89.48) we think cannot be discounted. Shifting focus to AUD/USD he comments that his view for the pair remains unchanged and with positive risk appetite subsiding, it may also remain on fragile ground in the current environment. He writes, “With little inclination in the past few sessions to re-challenge the 1.0300 level, we stay on a sell-rally posture for the pair for now with the 1.0200 support perceived to be at risk before 1.0150.”