Danske Bank: USD/JPY short strategy performing well with further downside potential

FX analyst at Danske Bank stated on Feb 26th that following a widespread deterioration in market risk sentiment, oil prices and US Treasury yields plunged significantly, causing USD/JPY to break below 149 yesterday. We previously recommended shorting USD/JPY, and currently the currency pair is approaching our modest target price of 147. Therefore, our previous recommendation remains valid, but we believe the currency pair will continue to decline further.

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