USD/JPY: There are fundamental reasons for an upward trend – Commerzbank
USD/JPY hit the 150 mark, triggering a knee-jerk reaction drop. Economists at Commerzbank analyze the pair’s outlook.
Interventions do little to change the fundamental situation
Japanese officials unanimously refused to confirm any FX intervention. Instead, they continued to emphasize their readiness to react to ‘excessive movements’.
In any case, Tuesday's exchange rate movement will reinforce the impression among market participants that the 150 in USD/JPY is a sound barrier that is difficult to break through.
Ultimately, however, interventions do little to change the fundamental situation. As long as the US economy continues to appear robust and the BoJ does not seek an exit from its ultra-expansive monetary policy, there are fundamental reasons for an upward trending USD/JPY. FX interventions will do little to change this. If the MOF nevertheless continues to intervene, an attrition battle could loom, with the currency market repeatedly testing the 150 mark and the MOF reacting accordingly. The next few days are likely to remain exciting.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.