JPY Rate Forecast: JPY Bears Eye 113 Level
Fundamental Forecast for JPY: Bearish USDJPY ANALYSIS AND TALKING POINTS: Record High US Equity Markets Keeps JPY on the Backfoot Key Risk Events Include: FOMC , US-Japan Trade Talks and Trump-Abe Summit The Japanese Yen had another soft week, with the currency losing 0.5% against the US Dollar . The fundamental theme alongside the technical set up suggest that the recent weakness is set to continue. During the past week, the BoJ stuck to its ultra-loose monetary policy stance, reiterating the message that the BoJ will continue QQE until the 2% inflation target is reached. With core inflation running at sub 1%, this suggests that the exit is not expected for some yet. Consequently, US-JP bond spreads have continued to widen with the US 10yr pushing back above the key 3% level, which in turn has pushed USDJPY towards the 113.00 handle. For the upcoming week, we remain bearish on the Japanese Yen. The beginning of the week will see th...
