USD/JPY May Be Capped Around 115 by Yen Repatriation Flows: SMBC
16 February 2016, 10:15
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(Bloomberg) -- USD/JPY’s upside could be curbed around 115 level by yen repatriation flows in run-up to March-end of Japan’s fiscal year, says Shinji Kureda, Tokyo-based head of FX trading at Sumitomo Mitsui Banking Corp., in an interview.
- Sees no basic change in external risk factors such as China and oil; says key focus will probably be whether U.S. economic growth peaks out or not
- Adds BOJ’s negative rate may have limited effect on JPY unless global economy stabilizes and risk appetite fully recovers
- Forecasts FX pair in 110-115 range for a while
- USD/JPY now up 0.1% at 114.69, vs 114.29-114.87 range
