Spot is expected to remain within the 108/111.40 range in the short term horizon, noted Arne Rasmussen, Head of FI Research at Danske Bank.
“We still see USD/JPY within the 108-111.40 range near term, but the risk of further escalation of the US-China trade war is likely to continue to weigh on the cross via the risk channel”.
“In relation to the US-China trade spat, next key date to watch out for is 30 June when the US announces a plan to restrict Chinese investments into the US and to limit exports of US tech products to China”.
“We see value in buying 3M USD/JPY puts as a hedge against a trade war escalation and political uncertainty in Japan”.
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