USD/JPY risks still tilted to the downside – Danske Bank

Mathias Mogensen, Analyst at Danske Bank, sees the pair still risks further retracement.

Key Quotes

“USD/JPY traded lower yesterday and temporarily dropped below 111 for the first time since 18 September, as lower US yields and weak risk sentiment weighed on the cross”.

“Risks remain skewed to the downside near term amid stretched short JPY positioning, a flat US yield cur ve and BoJ talks about ‘policy adjustment’. Technically, a break below the key support level at 110.83 could open up for a test of 110”.