NZD: 4 Reasons To Buy NZD/JPY: What's The Trade? – BofAML

Bank of America Merrill Lynch FX Strategy Research promotes long NZD/JPY position on the ground of the following 4 reasons:

1- "Short NZD is the most stretched short position in G10 FX.

2- Our data analysis flags upside risks for NZD/JPY.

3- Domestic flow dynamics is becoming more supportive for USD/JPY and cross-yen pairs.

4- We believe that the RBNZs dovish stance is not sustainable,“ BofAML notes.

Risks: "a global shock or new concerns about China,” BofML adds.

In line with this view, BofAML recommends buying NZD/JPY via options – a 3-month NZD/JPY 82/85 call spread.

NZD/JPY is trading circa 78.50 as of writing. 

Source: Bank of America Merrill Lynch Rates and Currencies Research

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

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/rO1RkHGzc5s/nzd-4-reasons-buy-nzdjpy-whats-trade-bofaml

from Online Forex Trading Resource
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