USD/JPY: Downside risks – Danske Bank

Sandeep Kanihama FXStreet Contributor

Piet P. H. Christiansen, senior analyst at Danske Bank, points out that the USD/JPY pair crossed 108 into 107 territory as Mr. Powell is leaning against the poor cyclical backdrop.

Key Quotes

“We extrapolate: data is likely to continue showing that a cyclical slowdown is still with us but we expect to meet it by adjusting US yields and the dollar, appropriately. This is exactly what global macro needs to avoid a more gloomy path. Our 3M forecast is 107 but there's clearly downside risk to(wards) 105.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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