Japanese Yen Promoting On Final Legs, SocGen FX Analysts Say

Socgen has taken word of the most recent CT FX market positioning information launched by the CFTC with a selected concentrate on the Japanese Yen.

Whereas he’s cautious of promoting the US greenback Yen (USD / JPY) change price given the upward strain on US bond yields, he calls to not purchase at these ranges.

The information recorded a pointy swing for the week with a brief yen place of 39,400 contracts after a protracted place of 6,500 contracts the week earlier than.

There was an enormous unwinding of lengthy positions within the yen over the previous two months.

Socgen notes that the quick place as a proportion of open curiosity is on the highest degree because the first half of 2019.

COT is commonly seen as a contrarian indicator with extreme quick positions adopted by a forex rally whereas an prolonged lengthy place is commonly a warning {that a} forex is over-stretched.

In opposition to this background, Socgen notes {that a} quick place within the yen in magnitude is commonly a warning signal that the promoting of the yen is close to a peak.

“When the market was this quick on the yen, the USD / JPY was lower than 1% of its peak for this transfer (simply above 112).”

In opposition to this backdrop, the financial institution is warning in opposition to additional shopping for of USD / JPY with a possible peak round or simply above 110.00.

best exchange rates today“We cannot take the danger of spending plenty of yen till the treasury market stabilizes, however this yen liquidation is shedding momentum now and is on its toes.”

USD / JPY was barely weaker on the day at 108.75 in New York on Monday.

There can even be reservations about the potential of additional change price good points between the British Pound and the Yen (GBP / JPY).

GBP / JPY fell to 150.50 on Monday from 35-month highs round 152.50 final week.


Lower your expenses in your forex transfers with TorFX, voted Worldwide Cash Switch Supplier of the 12 months 2016 – 2020. Their objective is to attach prospects with extremely aggressive change charges and a novel devoted service, whether or not they select to commerce on-line or over the cellphone. Be taught extra right here.

About Earl V.

Check Also

Pakistan Exchange Rate Today – April 20, 2021

This is a list of exchange rate in Pakistan today for April 20, 2021, including …