Kathy Lien Makes Sell Side Call on EUR/JPY
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Speaking on CNBC's Money in Motion this past Friday, currency expert Kathy Lien made her case for going short EUR/JPY. She believes the EUE/JPY is the best way play weakness in the Euro, compared to, say, EUR/USD.
Both the JPY and USD are trading as safe-haven assets. However, according to Lien, USD could be undercut by QE3 in the U.S., which make the EUR/JPY the preferable trade.
Lien has a price target of 97 on EUR/JPY, with little support seen down to as low as 95.60.
"EURJPY is the quintessential "risk off" trade, which means that it traditionally underperforms when investors are nervous and given the extreme pessimism of the ECB and other central bank officials, the possibility of weakness could raise the level of anxiety in the market and help [the selloff in] EUR/JPY."
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Both the JPY and USD are trading as safe-haven assets. However, according to Lien, USD could be undercut by QE3 in the U.S., which make the EUR/JPY the preferable trade.
Lien has a price target of 97 on EUR/JPY, with little support seen down to as low as 95.60.
"EURJPY is the quintessential "risk off" trade, which means that it traditionally underperforms when investors are nervous and given the extreme pessimism of the ECB and other central bank officials, the possibility of weakness could raise the level of anxiety in the market and help [the selloff in] EUR/JPY."
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