BTMU FX Strategy Research discusses its outlook for EUR/USD and USD/JPY for the coming week.
"The technical picture is not particularly good for EUR/USD with a head and shoulders break to the downside evident. Positive US data and the technical picture leans us toward a bearish bias for the week ahead," BTMU argues.
BTMU is bearish on EUR/USD in the near-term expecting the pair to trade in 1.14-1.19 range.
"Many Japanese investors will now have to take on more unhedged risk, supporting a higher USDJPY. However, real flows have not matched up with investment strategies, so USDJPY topside for next week will be below 115. The BoJ’s Monetary Policy Board meeting October 30-31 is not likely to impact USDJPY much," BTMU adds.
BTMU is neutral on USD/JPY in the near-term expecting the pair to trade in 111.75-114.75.
Source: BTMU ResearchOriginal Article
