Usd/jpy Downside Is Quite Limited

Usd/jpy Downside Is Quite Limited


Quotes from Societe Generale Cross Asset Research:
-We think that USD/JPY downside is quite limited. Any break of the recent lows at 77.66 would open the door towards the end of October 2011 low at 75.60. Such levels have prompted FX intervention by the BoJ in the past. This level is likely to act as a floor again.
-As far as the upside is concerned, the 20 August high of 79.67 would be the first level to reach, before our end of year target at 80. More lasting positive risk sentiment will be necessary to consider higher levels, such as the March 2012 highs in the 84 area. Let's hope a stabilisation in the eurozone debt crisis and decent global growth will allow for such a target next year.