A trade via TD, short CHF/JPY. From the note:
- We add a short CHFJPY trade to our FX model portfolio
- entering at 143.05
- targeting 136
- stop loss at 147.25
TD citing:
- CHF is now the most overbought G10 currency - by a significant margin. ... TD's positioning framework .... CHF sits in the 97th percentile over the past 6m
- JPY sits in the 4th percentile
- At current levels of the US 10y, CHFJPY should be trading around 136
- MRSI's trading weights have a strong CHFJPY sell signal, reflecting its short CHF and long JPY bias. MRSI is short CHF on 7 of the 12 factors while long JPY on six factors. CHF scores poorly on carry, equity, risk, growth, positioning, terms of trade, and yield curve.
