Fundamental Forecast for Yen: Neutral
- USDJPY Rallies as US GDP Rebounds Strongly in the Second-Quarter
- USDJPY Attempting to Breakout
The USDJPY broke out of the bearish trend from earlier this year as the
Federal Open Market Committee (FOMC) scaled back its dovish tone for
monetary policy, but the Bank of Japan (BoJ) interest rate decision on
August 8 may boost the appeal of the Japanese Yen as the central bank
remains confident in achieve the 2% inflation target over the policy
horizon.
USDJPY may face a near-term pullback during the
first full-week of August as the Relative Strength Index (RSI) turns
around ahead of overbought territory, but we will revert back to the
approach of looking for opportunities to ‘buy dips’ in the dollar-yen
as the pair breaks out of the downward trend from earlier this year.
