Home USD/JPY: Local Bids Emerge; Staying Constructive USD/JPY & Long AUD/JPY – BofAML
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USD/JPY: Local Bids Emerge; Staying Constructive USD/JPY & Long AUD/JPY – BofAML

USD/JPY advanced alongside US  yields. Can it continue higher? Here is a view on both USD/JPY and AUD/JPY:

Here is their view, courtesy of eFXdata:

 Bank of America Merrill Lynch Research discusses  USD/JPY outlook from the flows perspective and notes anticipated bids in USD/JPY and other cross yen pairs by Japanese investors appear to be emerging, judging from the pair’s price action and major lifers’ investment plans for the new fiscal year, which have been and will be announced throughout this week.

“The Abe-Trump summit last week confirmed the two countries would continue to focus on their shared agenda of national security, which keeps the bilateral trade tension contained at least for the time being.

Abe’s struggle to regain lost public support poses key political risk and the geopolitical risk on North Korea carries uncertainty heading into a potential Trump-Kim summit, but we think the positive flow for USD/JPY is gradually outweighing negative political risk,” BofAML argues.  

“We remain constructive on USD/JPY and also long AUD/JPY*,” BofAML adds.  

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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.