USD/JPY: Barclays bank thinks selling the pair is week's best trading strategy

This week, Barclays recommended that its clients sell the USD/JPY.

"We recommend selling the USD/JPY because we think the FOMC is not expected to provide much support to the USD, while the inaction of the BoJ this week should still result in some upward pressure on the JPY, especially in light of the risk of Brexit. We expect the USD/JPY to hit 105 at the end of Q2 in the event of "Bremain", although the pair could fall to 97 in the event of "Brexit" as risk aversion would be expected to intensify in this case.

From a technical point of view, we are bearish overall in terms of the USD/JPY, and we would use any short-term rebound as an opportunity to sell at a better price. Selling interests have strengthened in recent weeks under the resistance area at ​​112.50/113.15. Our long term bearish outlook remains intact as long as the pair moves below 116.15, the low of the previous range in August 2015. A move below support at 105.50 would support encourage our bearish scenario towards 100.70", Barclays predicts.