USD/JPY seen within 108.00-111.40 range – Danske Bank

Pablo Piovano FXStreet

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.

Key Quotes

“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”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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