USD/JPY: bearish views (TDS, BoA)
TD Securities: “USD/JPY has fallen sharply over the past month but downside risks remain. Spec positioning remains heavily short JPY and seasonal factors may just be about to bite a little harder”.
Bank of America: “USD/JPY breached down its range. Stay near-term bearish for 95.25 (3-5m triangle/contracting range support), potentially 93.65/79. However, don’t lose sight of the bigger picture. This multi-month range ultimately resolves higher for a resumption of the long term bull trend, with year-end targets seen to the 107/108 area.”
Citigroup Securities: “A fall in risk/reversal spreads in the options market implies there is strong demand for dollar puts by short-term players. In terms of technicals, USD/JPY has not recovered even to its five-day average (97.13). A potential target in the near term would be a 76.4% of its rally from June to early July at 95.59.”
Chart. Daily USD/JPY