USD/JPY seen testing 100.00 in the short term – Danske Bank

Analyst at Danske Bank Kristoffer Lomholt sees the pair grinding lower towards the psychological support at 100.00 in a month’s view.

Key Quotes

“USD/JPY traded lower yesterday, despite the positive sentiment on equity markets during the European session”.

“Clearly, investors’ appetite for shorting the JPY remains low after the Bank of Japan eased less than expected at its latest meeting in July and instead promised to present an evaluation of its monetary policy strategy at the next meeting on 21 September”.

“According to the latest IMM data, speculative JPY positioning is now stretched long again. We still expect USD/JPY to grind lower in the short term and expect the cross to test the 100 level in the next month”.