Dollar/yen has been quite stable above 110 and is looking for a new direction. What’s next? Here is their view, courtesy of eFXdata: Bank of America Merrill Lynch discusses USD/JPY outlook and notes that USD/JPY has remained relatively resilient as of late despite NKY weakness. “While the Nikkei 225 index has corrected more than 5% since President Trump officially approved tariffs on Chinese goods on 14 June, USD/JPY has been largely unchanged. This divergence may continue if trade tensions rise only gradually, until the market starts pricing in slower US growth and/or Fed hiking path. This may take a while judging from the run of strong US data,” BofAML notes. “USD/JPY‘s recent resilience has both macro and flow aspects, in our view: (1) USD/JPY‘s diminished sensitivity to risk assets and sustained sensitivity to the Fed‘s policy; (2) M&Aactivity by Japanese corporates; (3) net equity flows pointing to yen selling; and (4) lack of short JPY positions among foreign fast money,” BofAML argues. In line with this view, BofAML expects USD/JPY to rise to 116 by 3Q18 before peaking but acknowledging that unpredictable trade war scenarios will likely drive the currency into the summer. BofAML expects USD/JPY to end year at 112. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Daily Look share Read Next The reasons why the dollar should depreciate – Natixis FX Street 3 years Dollar/yen has been quite stable above 110 and is looking for a new direction. What's next? Here is their view, courtesy of eFXdata: Bank of America Merrill Lynch discusses USD/JPY outlook and notes that USD/JPY has remained relatively resilient as of late despite NKY weakness. "While the Nikkei 225 index has corrected more than 5% since President Trump officially approved tariffs on Chinese goods on 14 June, USD/JPY has been largely unchanged. This divergence may continue if trade tensions rise only gradually, until the market starts pricing in slower US growth and/or Fed hiking path. This may take a while… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
