USD/JPY: Subject to upside risk on US reflation reality check – ING

The research team at ING offers their outlook for trading USD/JPY this week.

Key Quotes:

“The latest whipsaw in USD/JPY mirrored the path of long-doted US yields and sow a brief move above 115. Fundamentals suggest the next big move is higher but markets happy to wait before buying into Trump tax reforms.”

“Second-tier data in Japan (trade balance, PMI and retail sales) unlikely to have much of a market impact. Focus for the BoJ is keeping a lid on 10-year JGB yields (below 0.1%); expect to see an increased amount of buying again as was the case at the last operation (Y320 bn).”