The Standard Chartered analysts offer their outlook on the USD/JPY pair, in the event of a full-blown US-China trade war.
“See a full out trade war as the US applying 25% tariffs on remaining Chinese goods and then countermeasures from China.
Haven currencies should benefit.
Thus a rapidly higher USD, but also Yen.
USD/JPY seen lower towards 100.”
However, a ‘cold deal’ with wariness persisting on both sides) between the US and China in the third quarter. This will halt tariff escalations.”