Headwinds for USD/JPY advance - TDS

FXStreet (Guatemala) - FX analysts at TD Securities explain a combination of factors pressuring the USD/JPY to the downside.

Key Quotes:

“A combination of lower yields, narrower spreads, falling stocks and rising market volatility is a supportive cocktail for the JPY”.

“Spread/equity driven fair value estimates suggest USD/JPY is overvalued currently”.

“Corrective technical pressure will extend towards 105 below 106.55/60 support”.