USD/JPY: buying opportunity
Kira Iukhtenko, FX BAZOOKA analyst
USD/JPY holds below the 2013 high of 103.40, consolidating in the 103.00/102.15 range. The greenback has recovered some ground on Thursday following the yesterday’s test of the bullish channel support (102.15).
US dollar has gained ground on the increased expectations of the Fed’s tapering on Dec. 18. However, we wouldn’t expect the pair to rally dramatically in the coming days: uncertainty about the Fed’s monetary intentions still remains very high.
Anyway, in the medium-term the USD/JPY pullback from 103.40 is seen as purely corrective and creates a buying opportunity. Our medium-term targets for the pair lie at 105.50 and 108.80. We remain clearly bullish as long as the pair holds above 100.80.
Chart. H4 USD/JPY