USD/JPY at 152 is a possible Bank of Japan intervention trigger – Credit Suisse

Economists at Credit Suisse are looking for (a lot) of upside for USD/JPY ahead, saying interventions is a long way off.

The point out that:

  • New BoJ governor Ueda’s dovish stance at his first meeting in charge on 28 April catalysed an 8% USD/JPY rally in the two months that followed.

And there is room higher ahead of the next policy meeting:

  • With the immediate inflation outlook likely to be upgraded at the July 28 – 29 meeting, the market will once again look at JPY upside trades ahead of that.

The economist team say to watch wage data next week:

  • The July 7 release of cash earnings data will be key as more weak data would disappoint expectations.

On yen implications:

  • In the meantime, the trading range for USD/JPY can stay wide at 135-152, with the latter level a possible intervention trigger.

The USD/JPY trend is strong:

Check out Greg’s analysis here:

This article was written by Eamonn Sheridan at Source