Deutsche Bank issued a new currency charts, which confirms the “bearish” sentiment Bank JPY, and includes the recommendation to keep customers long positions USD / JPY.
Over the past 5 weeks, the pair showed 7 solid growths that shifted the traditional indicators, such as the 14-day RSI (Relative Strength Index) in the zone “prekuplennosti” (> 85). This improves the outlook due to lower coefficient of risk / reward, but the DB is not so sure.
“Naturally, this has led market participants to the pursuit of growth, and as a result, the number of open interest declined. However, it says that investors will tend to buy at the fall and follow the technical breakthroughs, “- says the DB.
“This review of the Exchange was the seventh of May, 2012, which recommends selling the yen; Since then, the USD / JPY pair added 40% and is still expected 10% increase, “- adds DB.
Hold long positions with a view to the end of the year 112, and 120 – for the next year, “- advises DB.