USD/JPY: Move to test 150 to unfold on a break past 145 – Credit Suisse

While our call for unchanged policy we made last week did not work out, we feel vindicated by the ‘spirit’ of both the very modest shift in policy and Monday’s very rapid yield-capping intervention.

Our expectation for Q3 is 135-152, and we have seen the 145 level as a natural magnet. If that level were to break, we see little reason for a move to test 150 to not unfold, unless in the meantime there are strong downside surprises for US data. At that point, we suspect the BoJ will be tempted to intervene again in the FX market as it did in Sep/Oct 2022, at which point we would be looking to take profits on long positions.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

USD/JPY climbs above 142.00 as impact of BoJ policy tweak fades, US factory data eyedThe USD/JPY pair sustains comfortably above the crucial resistance of 142.00 in the European session. The asset picks strength as the impact of a twea
Source: FXStreetNews - 🏆 14. / 72 Read more »

USD/JPY keeps the outlook mixed for the time being – UOBUSD/JPY is seen keeping a bumpy trade within the 138.50-141.95 range in the next few weeks, comment UOB Group’s Economist Lee Sue Ann and Markets Stra
Source: FXStreetNews - 🏆 14. / 72 Read more »

USD/JPY: June’s high of 144.50/145 expected to be an important hurdle – SocGenUSD/JPY trades at multi-week highs. Economists at Société Générale analyze the pair’s technical outlook. Defence of 140.20 crucial for persistence in
Source: FXStreetNews - 🏆 14. / 72 Read more »

USD/JPY Hoy: Pol\u00EDtica BoJ Respalda Toros | DailyForex.comEl USD/JPY rebot\u00F3 al alza hacia el nivel de resistencia en 141.17, partiendo del soporte en 138.06 en la misma sesi\u00F3n
Source: Daily_Forex - 🏆 567. / 51 Read more »

USD/JPY consolidates in a range around 142.35-40 area, just below three-week peakThe USD/JPY pair oscillates in a narrow band during the Asian session on Tuesday and consolidates its gains registered over the past two days. Spot pr
Source: FXStreetNews - 🏆 14. / 72 Read more »

USD/JPY Price Analysis: Refreshes multi-week high, bulls retain control above 61.8% Fibo.USD/JPY Price Analysis: Refreshes multi-week high, bulls retain control above 61.8% Fibo. – by hareshmenghani USDJPY BOJ Fed Technical Analysis Currencies
Source: FXStreetNews - 🏆 14. / 72 Read more »