JPY: Running out of reasons to chase USD/JPY higher – ING
|The politically paralysed USD and no new policy signals from Fed speakers at Jackson Hole suggest fairly limited US-centric catalysts for a move higher in USD/JPY explains the analysis team at ING.
Key Quotes
“An easing of geopolitical risk aversion may limit further downside beyond 108.50, though we believe the uncertain US political backdrop will keep the dollar on the back foot.”
“On the Japanese data front, we have national and Tokyo July CPI this week (Friday). The annual core reading should rise modestly from 0% to 0.1%, suggesting a bottoming out of disinflation dynamics. Yet, with inflation still substantially below the 2% target, this is unlikely to prompt any Bank of Japan policy repricing.”
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