USD/JPY: Trading range can stay wide at 135-152, the latter a possible intervention trigger – Credit Suisse

FXStreet Insights Team FXStreet

USDJPY remains the most controversial in the G10 FX space. Economists at Credit Suisse analyze the pair’s outlook.

JPY still stymied by BoJ

New BoJ governor Ueda’s dovish stance at his first meeting in charge on 28 Apr catalysed an 8% USD/JPY rally in the two months that followed. With the immediate inflation outlook likely to be upgraded at the 27-28 Jul meeting, the market will once again look at JPY upside trades ahead of that.

The 7 Jul release of cash earnings data will be key as more weak data would disappoint expectations.

In the meantime, the trading range for USD/JPY can stay wide at 135-152, with the latter level a possible intervention trigger.

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.

GBP/USD softens as Fed rate uncertainty supports US Dollar

GBP/USD edges lower after opening at a bullish gap, remaining within positive territory and trading around 1.3290 during the Asian hours on Tuesday. The currency pair is under pressure as the US Dollar (USD) stabilizes, driven by market caution ahead of the upcoming Federal Reserve policy decision due on Wednesday.

EUR/USD hangs near monthly low, holds above 1.1350 as USD bulls pause ahead of FOMC meeting

The EUR/USD pair is seen consolidating near the monthly trough and trading just above mid-1.1300s during the Asian session on Tuesday. Traders seem hesitant and await the outcome of a two-day FOMC policy meeting before placing aggressive directional bets.

Gold looks vulnerable as focus shifts to the Fed meeting

Gold is challenging the $4,050 level early Tuesday, extending the pullback from above $4,100, as sellers remain in control ahead of the two-day US Federal Reserve monetary policy meeting, starting later in the day. Gold is in the red for the second consecutive day so far this Tuesday, undermined by the recent demand for the US Dollar.

Senate prepares for potential CLARITY Act floor vote as Republicans work to secure support

Senate Republicans are preparing to advance the CLARITY Act as lawmakers face a narrow window to begin floor proceedings before the August recess. Senate Majority Leader John Thune is expected to move toward filing cloture on the motion to proceed to the bill, according to a Monday report by Eleanor Terrett.

Asian stocks including KOSPI slide as AI doubts hit chipmakers

Asian stocks fall sharply on Tuesday as mounting skepticism over the massive financial returns on artificial intelligence spending triggered a widespread sell-off across global semiconductor shares. The tech-driven downturn rippled from Wall Street into Asian markets, while investors shifted toward safety, driving bond prices higher and sending oil lower.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.