25 Jul 2013
Flash: U.S. durable goods orders key for USD/JPY bias Thursday - SocGen
FXstreet.com (Barcelona) - According to Sebastien Galy, FX Strategist at Societe Generale, the rise in US Treasury yields are supporting the case for a higher USD/JPY, however, the key will be Thursday's durable goods orders.
Key quote
"We remain stubbornly below the downtrend of end of May and within the triangular pattern. In an environment of a gentle risk rally post elections, it is the easiest path. Furthermore Japanese portfolio outflow may finally start to kick in. If their hedging activities are moving the cross currency swap market, then the uptrend is a coincidental indicator of such activity."
Key quote
"We remain stubbornly below the downtrend of end of May and within the triangular pattern. In an environment of a gentle risk rally post elections, it is the easiest path. Furthermore Japanese portfolio outflow may finally start to kick in. If their hedging activities are moving the cross currency swap market, then the uptrend is a coincidental indicator of such activity."