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USD/JPY has been steady in recent months. What is the structural bais for the currency in the coming months?

Here is their view, courtesy of eFXdata:

Bank of America Global Research maintains a structural bearish bias on USD/JPY over the coming months.

“Lockdown in key foreign economies led to deterioration of Japans current account balance in March and likely in April while  investors may have bought USD/JPYs dip. These factors probably mitigated downward pressure on USD/JPY in March,” BofA notes.  

“Going forward, (1)  a  low oil price,  (2)  bottoming  out of exports, (3)  slowdown  in outward M&A, and  (4)  the  unattractive level of unhedged foreign bonds,  should be supportive of JPY,” BofA adds.  

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