DailyFX Tips & Picks: Analyst’s pick
CURRENCY STRATEGIST
CHRIS VECCHIO
My pick: Stay short sterling-yen, watch for dollar-yen below ¥101.50
Expertise: Fundamental and technical analysis
Average time frame of trades: A few hours to a few weeks
The yen was January’s top performer and started February strong. But sterling-yen’s late-week reversal draws further losses into question. We look to the individual components – sterling-dollar and dollar-yen – for clarity. The former remains range bound, and rebounded last week sharply at former resistance turned support from September-November at $1.6260. Dollar-yen is maintaining key former support at ¥101.75 on its recent rebound. Now that last week’s sterling-yen high (¥168.21) has already been broken this week, our prior short bias may no longer be warranted. A close above ¥168.21 would portend to further strength in the near-term.