USD/JPY: Barclays recommends selling rallies in the short term

Today, Barclays advises traders to sell USD/JPY and USD/CAD rallies to target 100 and 1.2830 respectively.

"We are looking for evidence of USD/JPY and USD/CAD tops as they approach resistance levels.

In view of the underperformance of the USD against the JPY and CAD over several months, we will initially prefer to sell rallies for reversals in the direction of the latest annual lows.

We expect a USD/JPY move towards 103.80, the 21-day moving average. A close below this would signal a continuation of the decline towards 100.00.