Further CLP Upside In Store

Our short-term bullish stance on the Chilean peso continues to play out nicely, following a heavy sell-off in the currency in late January. Among Latin currencies, the peso looked the most oversold, prompting us to take a bullish Chilean peso/bearish Japanese yen position in our Key Market Views portfolio on February 9. Indeed, the peso has hit our short-term target of CLP5.8000/JPY on February 15, and briefly tested the upper limit of its current trading range as seen on the hourly chart. The peso has since retraced back to CLP5.8768/JPY, and we believe that another test of short-term resistance around the CLP5.8700/JPY mark is looking likely.

To read the full article, please choose one of the following options: