It’s only a matter of time before USD/JPY rallies – BBH

FXStreet Insights Team FXStreet

USD/JPY is expected to rally above its current range in the 151.000s, according to Strategists at BBH.

A combination of very gradual BoJ tightening and a more muted than currently priced-in Federal Reserve (Fed) easing cycle are the fundamental catalysts.

USD/JPY falls due to Ueda – will rise eventually

“USD/JPY fell by over 0.50% to an intra-day low around 150.80 following hawkish comments from BOJ Governor Ueda.”

“Verbal defense on the Yen continues as Japanese Finance Minister Suzuki and Prime Minister Kishida both warned against excessive yen moves.”

“It’s only a matter of time before USD/JPY breaks higher because we anticipate a gradual BOJ tightening process and a more muted than currently priced-in Fed easing cycle.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD bounces off lows near 1.1600

EUR/USD no gathers some steam and bounces off daily lows near the 1.1600 region. The pair’s daily pullback comes on the back of the firmer tone in the US Dollar amid rising Treasury yields and better-then-expected US data releases from the job market.

GBP/USD remains offered below 1.3300

GBP/USD is coming under renewed pressure, surrendering its earlier gains and retreating toward the area below the key 1.3300 support, always on the back of the bid bias in the Greenback and despite earlier hawkish comments from BoE poliymakers.

Gold keeps the bid tone near $4,200

Gold is still holding a positive tone around the $4,200 zone per troy ounce on Tuesday, though it’s starting to lose a bit of steam as the US Dollar finds support from stronger-than-expected jobs data. Even so, markets remain confident the Fed will move ahead with a rate cut on Wednesday, which ultimately lends support to the yellow metal.