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BUZZ-COMMENT-Easier JPY crosses may be opportunity for JPY bears

Credit: REUTERS/THOMAS WHITE

Recent pullbacks in the JPY crosses, some from multi-year highs, may provide JPY bears fresh opportunities to get in at better levels, especially ahead of key risk events on Thursday.

June 9 (Reuters) - Recent pullbacks in the JPY crosses, some from multi-year highs, may provide JPY bears fresh opportunities to get in at better levels, especially ahead of key risk events on Thursday.

U.S. May CPI is forecastto rise 0.4% month-on-month and 4.7% year-on-year according to a Reuters poll, following rises of 0.8% and 4.2% in April. The European Central Bank is expected to leave policy unchanged on Thursday but any hints of future tapering plans could affect market expectations .

EUR/JPY has seen some retracement recently, falling back to 132.90 on Monday from 134.12 on June 1, its highest since 137.51 in February 2018. Despite the push down, the cross remains in an uptrend, holding around its Ichimoku daily tenkan at 133.51 and above the kijun at 132.55. Underlying support is eyed at the 55-day moving average at 131.57.

GBP/JPY too looks to be biding its time before another leg up. It eased to 154.50 on Monday from 156.06 on May 27, its best since 156.60 also in February 2018. GBP/JPY's Ichi tenkan is at 155.28, kijun at 153.63 and 55-DMA at 152.53.

ZAR/JPY, CAD/JPY and AUD/JPY also bear watching given recent spurts higher in commodity markets. The former two could climb to fresh multi-year highs while AUD/JPY could break out of its current rut. Previous comments , , , also .

For more click on FXBUZ

EUR/JPY: https://tmsnrt.rs/3g4YL0F

GBP/JPY: https://tmsnrt.rs/350m7hF

(Haruya Ida is a Reuters market analyst. The views expressed are his own. Editing by Sonali Desai)

((haruya.ida@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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