USD/JPY: Can Spend A Bit Of Time Above 106 Before Heading Back Towards 104 In 1-Month – NAB

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What is the outlook for USD/JPY in the near-term?

Here is their view, courtesy of eFXdata:

NAB Research discusses USD/JPY outlook and sees the pair’s gains limited in the near-term.

“The US economic outperformance year to date has resulted in a move up in the 10y UST-JGB real spread, this means that near term USD/JPY can spend a bit of time above ¥1.06,” NAB notes.

“But if the move up in the spread is a function of relative economic outperformance, a change in Japan’s economic fortunes would favour the pair heading back towards ¥1.04 over the coming month,” NAB adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.

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