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Nov 03 - 06:55 PM

USD/JPY: To Trade Above 150; Dips Into Recent Lows Offers Good Entry Points For L-Term Players - Credit Suisse

By eFXdata  —  Nov 03 - 03:00 PM

Credit Suisse maintains a bullish bias on USD/JPY and likes buying dips strategically into the recent lows around 145.25.

"We note that BOJ governor Kuroda told parliament on Monday that he still believes in current monetary policy, pointing out that much of current inflation is imported and that sustained wage growth is key to any policy shift. Japanese media suggests the main umbrella union Rengo will ask for wage hikes of 5% next year, up from the 4% level it wanted for this year (2% was actually achieved). With longer -term inflation expectations rising too, it seems Kuroda still sees this as a unique opportunity to res et Japan’s inflation mindset and is unwilling to let go," CS notes. 

"We suspect that over time this will cause USDJPY to trade above 150.00 sustainably, and we think dips in USDJPY to recent lows around 145.25 offer good entry points for longer term players," CS adds. 

Source:
Credit Suisse Research/Market Commentary

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