EUR/USD: Risk Of Short Squeeze; USD/JPY: Sell Ahead Of 113.31 – TD

TD FX Strategy Research notes that USD is now running well below the level implied by rate spreads, so the risk/reward favors further upside into the rest of the week in rate sensitive currencies like EUR and JPY.

For the EUR/USD, TD notes that its now running nearly two-sigmas above its implied level from cyclical drivers, increasing the prospects for a short squeeze. 

Regarding USD/JPY, TD likes selling ahead of 113.31 as a hedge for skittish equity markets, especially in May. 

EUR/USD is trading circa and USD/JPY is trading circa 

Source: TD Securities Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
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