Bank of America: JPY 'in trouble'
Bank of America Merrill Lynch maintains a long USD/JPY position from around 99.53, with a stop at 97.61 and targeting 104.60.
In their view, a USD/JPY rise above 100.60 (Aug. 11 high) would put the weaker JPY trend on very firm footing. "Through here will act as a trigger for many technical based traders to either initiate long positions or add to pre-existing positions," BofA explains. Next targets are seen at 103.75 (May highs) and eventually at 104.60/105.00.
Chart 1. Weekly USD/JPY
BofA also recommends watching the 135.50 resistance in EUR/JPY. "Above here reaffirms the long term EUR/JPY uptrend, clearing the way for 138.12/141.03", they add.
Chart 2. Weekly EUR/JPY