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8 Oct 2013
Flash: EUR/JPY provides good entry level for long positions - RBS
FXstreet.com (Barcelona) - EUR/JPY presents a good opportunity to go long if one is prepared to anticipate a favourable resolution to the ongoing US fiscal issues, according to Greg Gibbs, FX Trading Strategist at RBS.
Key Quotes
"The EUR may rise on evidence of modest recovery, potential for a drift up in money market rates, investors seeing light at the end of the tunnel for Eurozone banks and periphery debt, and a large current account surplus."
"Current levels of EUR/JPY provide a good entry level for long positions if you are prepared to bet on the US avoiding the worst case fiscal debt ceiling scenario."
"The JPY has strengthened on US fiscal impasse concerns. However, it is likely that the US continue to limp forward without defaulting on debt, avoiding a worst case scenario."
"This may contain risk appetite, but perhaps not blow it up much further. With Japan still conducting its steady and rapid monetary policy easing, keeping its yields very low and stable, it is worth looking at opportunities to fade recent strength in JPY. Current levels of EUR/JPY may provide buying opportunity testing trend line support.
Key Quotes
"The EUR may rise on evidence of modest recovery, potential for a drift up in money market rates, investors seeing light at the end of the tunnel for Eurozone banks and periphery debt, and a large current account surplus."
"Current levels of EUR/JPY provide a good entry level for long positions if you are prepared to bet on the US avoiding the worst case fiscal debt ceiling scenario."
"The JPY has strengthened on US fiscal impasse concerns. However, it is likely that the US continue to limp forward without defaulting on debt, avoiding a worst case scenario."
"This may contain risk appetite, but perhaps not blow it up much further. With Japan still conducting its steady and rapid monetary policy easing, keeping its yields very low and stable, it is worth looking at opportunities to fade recent strength in JPY. Current levels of EUR/JPY may provide buying opportunity testing trend line support.