Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank
Summary: USDJPY above 148.80 but struggling at 149.75 resistance
EURJPY rejected at 161
GBPJPY rejected just below 189
GBPJPY has been rejected at resistance at around 188.66 despite spiking a few cents higher. A close above is needed for further upside to 190
However, GBPJPY seems likely to slide back to the 187.50 level.
To establish a downtrend a break below 185.20 is needed.
RSI is still in positive sentiment but with divergence indicating GBPJPY is likely failing moving higher. Range bound behaviour around 188-187 next few days seems like.