Economists at ING analyze the USD/JPY outlook for the coming months.
152 probably was the top
We think 152 probably was the top for USD/JPY and it will struggle to hold above 146/147 levels now. Also, the better terms of trade story is providing external support for the Yen.
Two outside risks: 1) Geopolitics and a spike in oil prices are JPY negative 2) US Treasury Refunding risk on 29 Jan & higher UST yields.
USD/JPY – 1M 145.00 3M 140.00 6M 135.00 12M 130.00
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