USDJPY seems on its way to 122.17, 01/29/07 high
The USD/JPY failed to benefit from the carry trade renaissance that occurred over the last 8 weeks. This happened primarily because interest rate differentials between Japan and the US were shrinking at a pace never seen since 2001. Still in the past 4 week those circumstances have clearly changed. The most recent economic data for the world’s largest economy pushed the interest rate differential again in favor of the USD and we think the greenback could gain 200 pips against the yen over the next 20 days.
Trade suggestion:
Long at 120.00
Target at 122.00
Stop at 118.00
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