Jane Foley, Senior FX Strategist at Rabobank, thinks that there is a risk that USD/JPY will dip to 107 on a one-month view before returning to firmer levels later in the year. 

Key quotes

"Even though the safe haven JPY is the worst-performing G10 currency in the year to date, it is the best performer on a 5-day view as Covid related news in the Asian region destabilizes risk appetite." 

"Last month’s monetary policy review has provided the BoJ will a little more flexibility on its activities. There would appear to be little risk that policymakers will not continue to pursue ultra-accommodative policy measures for the foreseeable future."

"Despite the current optimism about the outlook for economic recovery in the Eurozone, the UK and the US, it is clear that the good news is not evenly spread. We continue to see risk that another burst of concern about the outlook for inflation in the US will enhance the outlook for the USD in the coming months and we maintain the expectation of choppy conditions in FX majors. That said, based on the current newsflow from Asia we have revised up our forecasts for the safe haven JPY. We see risk that USD/JPY will dip to 107 on a 1 mth view before returning to firmer levels later in the year." 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: The break into 0.6930s has summoned the bulls to target the 0.6950s

AUD/USD: The break into 0.6930s has summoned the bulls to target the 0.6950s

In a variation of a Wyckoff style schematic, the bulls have accumulated the Aussie at a discount. The price has broken out from within the 'consolidation' following the break of 0.6925 resistance, in a ''sign of strength'' which has encouraged the bulls.

AUD/USD News

USD/JPY struggles around 135.50 ahead of US Consumer Confidence

USD/JPY struggles around 135.50 ahead of US Consumer Confidence

USD/JPY is failing to surpass 135.50 as the DXY is trading lackluster. The US Consumer Confidence will bring a significant action in the asset. A mixed performance is expected from Japan's Retail Trade.

USD/JPY News

Gold bounces off $1,820 support zone, focus on US data, Fed’s Powell

Gold bounces off $1,820 support zone, focus on US data, Fed’s Powell

Gold Price consolidates recent losses at around $1,825.00 during Tuesday’s Asian session. In doing so, the yellow metal takes clues from the market’s cautious optimism ahead of the key US consumer sentiment numbers and the much-awaited central bankers’ debate at the ECB forum.

Gold News

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures