8 Apr 2015
Follow the trend in USD/JPY – DB
FXStreet (Barcelona) - Oliver Harvey, Macro strategist at Deutsche Bank, ranks FX based on technical factors according to their favourability to trade and suggests following the trend in USD/JPY, but maintaining caution on EUR/USD and EUR/GBP.
Key Quotes
“USD/JPY tops the technical scorecard as the most trending cross (to the downside). On an absolute basis, VHF and new groundiness indicators are around 71% and 43% respectively. The currency pair is not very stretched according to both RSI and RR measures, in addition to being the least volatile (as measured by the realized volatility metric).”
“Elsewhere, AUD/USD is also trending and breaking new ground. This currency pair is not very volatile according to both implied and realized volatilities, and is the least stretched according to RSI, suggesting recent moves may continue.”
“Avoid trades in EUR/USD and EUR/GBP as the momentum is low and price action is not smooth.”
Key Quotes
“USD/JPY tops the technical scorecard as the most trending cross (to the downside). On an absolute basis, VHF and new groundiness indicators are around 71% and 43% respectively. The currency pair is not very stretched according to both RSI and RR measures, in addition to being the least volatile (as measured by the realized volatility metric).”
“Elsewhere, AUD/USD is also trending and breaking new ground. This currency pair is not very volatile according to both implied and realized volatilities, and is the least stretched according to RSI, suggesting recent moves may continue.”
“Avoid trades in EUR/USD and EUR/GBP as the momentum is low and price action is not smooth.”