EUR/USD: Where To Buy Dips; USD/JPY: Where To Sell Bounces? - TD



TD Research discusses EUR/USD and USD/JPY trading strategies and maintains being medium-term EUR and JPY bulls.
"We maintain our view that the next few weeks could see the dollar recover a bit, which leaves us looking to use rallies a selling opportunities. The EUR will have to grapple with German political noise and the Italian elections. 
We don't see these as major drivers, though European political events are usually worth a modest repricing of the EUR's risk premium. Given it is running 2-sigmas from our HFFV, we look to use EUR/USD dips toward 1.21 as optimal buying opportunities.
USDJPY could also run out of gas, though we would use pullbacks toward 110 to get short," TD advises. 

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