By Jeremy Boulton — Aug 19 - 04:45 AM
Amends from daily to weekly cloud
Traders are short dollars nL1N3K608D
U.S. and Japanese monetary policy will support USD/JPY far into the future
Rate gap eyed 3% favour dollar at the end of next year
BOJ plans to keep buying bonds - Y3tln at start of 2026
Anticipated U.S. easing will fuel stock rallies, and support risk appetite
Robust risk appetite will favour USD longs - carry trades vs JPY
JPY likely to be sold vs GBP, EUR, NZD, CAD, AUD and MXN
Strong Japanese demand likely below 145 - ave f/c in Tankan rough 142-144
Weekly Ichimoku cloud 140.78-145.97 provides thick band of support
Source:
Refinitiv IFR Research/Market Commentary