Strong risk of intervention to protect USD/JPY pushing through 155 – Rabobank

Source Fxstreet
Apr 18, 2024 10:42

Analysts at Rabobank share a brief outlook for the USD/JPY pair.

BoJ may be able to hike rates again later this year

"Current USD strength is built around the expectation that Fed rates will stay stronger for longer. The greenback has also likely been boosted by safe-haven demand stemming from fears of an escalation of the Middle East crisis. Weaker US data and a reining in of concerns over the Middle East would both be useful in stemming USD strength."

"That said, it is our central view that the USD will remain relatively firm. Alternatively, stronger Japanese economic data and a boost to expectations that the BoJ may be able to hike rates again later this year would lend the JPY some broad-based strength. Earlier today, comments from BoJ dove Noguchi indicated that he was in no rush to hike rates again. That said, assuming that Japanese real household incomes turn positive later this year, we see risk that another BoJ rate hike could follow. This, however, is unlikely for some months. In the meantime, there is strong risk of MoF intervention in an attempt to protect USD/JPY pushing through the 155 area."  

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: US Dollar consolidates weekly gains ahead of mid-tier data releasesHere is what you need to know on Thursday, May 23: The US Dollar (USD) capitalized on the upbeat PMI data from the US on Thursday, and the USD Index closed the fourth consecutive day in positive territory.
Source  Fxstreet
Here is what you need to know on Thursday, May 23: The US Dollar (USD) capitalized on the upbeat PMI data from the US on Thursday, and the USD Index closed the fourth consecutive day in positive territory.
placeholder
USD/TRY keeps the range bound trade around 32.20 post-CBRTThe Turkish lira maintains its consolidative phase well in place on Thursday, hovering around the low-32.00s in the wake of the CBRT’s interest rate decision.
Source  Fxstreet
The Turkish lira maintains its consolidative phase well in place on Thursday, hovering around the low-32.00s in the wake of the CBRT’s interest rate decision.
placeholder
USD/CHF holds its position around 0.9100, FOMC Meeting Minutes eyedUSD/CHF snaps its three-day winning streak, trading around 0.9100 during the European session on Tuesday.
Source  Fxstreet
USD/CHF snaps its three-day winning streak, trading around 0.9100 during the European session on Tuesday.
goTop
quote