USD/JPY gets “Trumped” – DBS
|USD/JPY plunged 1.4% to 156.20, its lowest close in six weeks, DBS senior FX strategist Philip Wee.
USD/JPY to decline to 150 by the end of 2024
“USD/JPY started retreating below 160 on July 11 after spending 11 days in a 160-162 range. Yesterday’s break below 158 (50-day moving average) opened the door towards 155.10 (100d MA). The yield carry trade against the JPY faces domestic and external risks.”
“Apart from suspected currency interventions by the Japanese government, Bank of Japan Governor Kazuo Ueda said last month that the central bank could raise interest rates again at its meeting on July 31. Tomorrow, consensus expects Japan’s National CPI inflation to rise a second month to 2.9% YoY in June from 2.8% in May, and excluding food, to 2.7% from 2.5%.”
“BOJ will likely announce a detailed plan to reduce its balance sheet. On the US front, the Fed is opening the door to start lowering US interest rates this year while leading US presidential candidate Donald Trump decried the JPY’s massive weakness. We maintain our forecast for USD/JPY to decline to 150 by the end of 2024 and 139 by December 2025.”
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.