Our survey of market, fundamental and technical analysts suggests the following trade will be worth monitoring today, Jan 20th.
- USD/JPY: The prospect of increased intraday corporate flows, uncertainty surrounding the US debt ceiling and positional adjustment post BOJ all suggest that USD/JPY should see continuing and perhaps increasing intraday volatility. Stops are likely to be significant below 127.00 and may well be targeted but heavy real money buying is expected on any approach to 125.00. The topside again issued a sharp rejection at the 21-day MA but shorter term technical indicators remain in heavily oversold territory. In other words, it’s likely we will see tests of both sides of the market at some stage today.