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USD/JPY: Why Tech Levels Are Respected For Now? Where To Buy? - NAB
NAB FX Technical Strategy Research notes that recent Japanese MoF data shows that with USD/JPY drifting lower, Japanese investors have increased their interest in foreign bonds. "The last three weeks of July saw over ¥1 trn. worth of foreign bond buying per week on average, confirming anecdotal evidence of decent Japanese interest for US paper on USD/JPY dips. Thus, for now technical support levels are being respected," NAB argues. "Looking at our fair value model, over the past month USD/JPY has started to trade a little bit below fair value. Based on current levels a move sub-¥109 would be needed for the model ... (full story)