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.
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The USD/JPY trend is strong:
Check out Greg’s analysis here:
This article was written by Eamonn Sheridan at www.forexlive.com. Source