Barclays recommends selling USD/JPY.

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Barclays Capital suggest investors to sell USD/JPY this week, because they “believe the FOMC is unlikely to provide much support for the USD, while BoJ inaction this week could result in some yen appreciation pressure again, particularly in light of downside risk arising from the EU Referendum”.

“From a technical perspective, we are overall bearish for USDJPY and would prefer to use any short-term upticks as an opportunity to sell at better levels. The recent key reversal weeks signal selling interest ahead of resistance in the 112.50/113.15 area. Our longer-term bearish view is intact while price is below the 116.15 former range lows from August 2015. A move below support in the 105.50 area would encourage our bearish view towards our targets in the 100.70 area” wrote Barclays.

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