USD/JPY: Watch for a break lower of 109.34 – TDS

The USD/JPY pair looks overvalued in the opinion of analysts at TD Securities and a move lower is expected.

Key quotes

“If USD funding pressures are largely resolved, then USD/JPY looks too high relative to fundamentals.”

“We still have a long way to go before sounding the all-clear, but risk levels are well defined for cautious USD/JPY shorts, with 111.50 an obvious top.” 

“Fridays low (109.34) also corresponds to trendline support. Watch for a break lower.”