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 Japan‘s current account balance in March and likely in April while investors may have bought USD/JPY‘s 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.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
