Free Trial

Barclays recommend being long TRY/JPY, with...>

FOREX
FOREX: Barclays recommend being long TRY/JPY, with a target at Y21.10
(mid-February highs), and a stop at Y20.59 (below recent lows).
- They reason that a "hawkish CBT tone should benefit the TRY, which looks
compelling from a vol-adjusted carry perspective and has scope to rebound, given
the recent cheapening. TRY/JPY is also one of the best performers during low and
declining volatility, based on our analysis. Recent JPY weakness could continue,
at least in the near term if risk-on persists, as USD/JPY broke above its
long-held resistance (100dma/200dma in mid-Y111s). Mrs. Watanabe (Japanese
retail margin-FX investors) have been rebuilding long TRY/JPY positions after
forced loss-cutting last summer, and we see scope for further recovery in those
positions, supporting the pair."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.