It is difficult to have much confidence in support/demand for dollars against the yen below 76.25 its historic lows, said Marc Chandler, Global Head of Currency Strategy at Brown Brothers and Harriman. "However, a break of JPY76 may trigger a new wave of short covering by Mrs Watanabe and hedging by Japanese corporation".
"Based on current spot and volatility, JPY72.75 is 1 standard deviation from spot and about JPY69.25 is 2 standard deviations. These are cited to be suggestive of where the dollar can go from a simply quant point of view", said Mr. Chandler.
"Based on current spot and volatility, JPY72.75 is 1 standard deviation from spot and about JPY69.25 is 2 standard deviations. These are cited to be suggestive of where the dollar can go from a simply quant point of view", said Mr. Chandler.
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