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According to analysts at ING, suggests that the USD/JPY pair is making hard work of the upside and the JPY’s lack of correlation to the CNY is a distinct advantage right now.

Key Quotes

“The Fed’s data-dependent approach to monetary policy and the run of data points to some support for US market interest rates over coming months and the high USD hedging costs that have encouraged more Japanese interest in unhedged foreign bonds.”

“The BoJ recently felt the need to clarify forward guidance of low rates until spring 2020 and ease eligible collateral requirements. Clearly normalisation won’t be an issue for the BoJ, who will closely monitor developments around the planned VAT hike on 1 Oct.”

“110/112 may be the best levels until the $ trend turns into 2020.”