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Aug 08 - 03:55 AM

USD/JPY - May Not Stray Far Beyond This Week's Range For A While

By Jeremy Boulton  —  Aug 08 - 03:25 AM
  • USD/JPY has traded 141.68-147.93 this week

  • There is a chance that the pair settles within a rough 140-150 range

  • Japanese firms forecasting 142.68 average this FY should be eager dip buyers

  • Weekly Ichimoku cloud base - shaped base after 2022 intervention - is 140.78

  • BOJ policy will continue to weigh on yen - bond buys will limit upside

  • Expectations for US int rate may encourage specs to sell short and sell low

  • Changes to policy will lessen pressure on yen limiting extent of its decline

  • Consolidation phase following Jul-Aug plunge should be lengthy

  • Whatever BOJ does, unlikely to change policy quickly following this shock

Source:
Refinitiv IFR Research/Market Commentary

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