USD/JPY to trade within the 111.65 -114.50 range near term – Danske Bank

Analysts at Danske Bank note that USD/JPY has edged lower since yesterday’s Bank of Japan meeting, with Haruhiko Koruda actually sounding relatively dovish and they still expect the BoJ to keep its current ‘QQE with yield curve control’ policy unchanged in 2018 and expect USD/JPY to trade within the 111.65 -114.50 range near term, with the US Fixed Income market still the main driver for JPY.

Key Quotes

“In our view, USD/JPY looks increasingly ‘toppish’, especially as the US tax reform should be factored in now and, tactically, we would consider selling USD/JPY for a short-term move down to 111.60 (200-day moving average) with a stop at 114.55.”