The Week Ahead

Major currencies have remained largely confined to ranges over the last week. In EUR/JPY, that range has been roughly between 159.00-163.00. While range conditions continue to prevail, volatility declines and risk appetites improve. Barring major stock market volatility, range conditions will favor long JPY-cross positions, such as buying EUR/JPY or GBP/JPY on weakness (buy on dips).