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Dollar/yen  tumbled down on the dollar’s weakness and struggles around the 109 level. What’s next?

Here is their view, courtesy of eFXnews:

Credit Suisse Research discusses USD/JPY outlook and notes that USD/JPY has seen a significant sell-off this  week despite the face that the BoJ meeting has been a non-event where the Central Bank maintained its dovish stance.

“Given that USDJPY would have probably gone much, much lower if the BOJ had been hawkish, even if US rates had moved higher as a result,  the net result seems to be a lot more paths leading to a lower USDJPY than a higher one.

For a higher USDJPY to materialize and persist as a trend, it appears that the US itself will have to deliver policies and / or data that drive the greenback higher across the  board. In the absence of that,  the path of least resistance will remain to sell USDJPY on rallies,” CS argues.

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