USD/JPY Rangebound Near-term – UOB
According to the research team at UOB Group, the pair’s perspective has shifted to the neutral side in the upcoming 1-3 weeks.
“USD/JPY saw a low of 106.25, before another bounce was seen in the overnight session”.
“According to reports, Japan’s former Vice President of the Ministry of Finance, Shinohara said that Fellow G7 nations would be unlikely to accept moves by Japan to stop the JPY’s appreciation under the current economic conditions”.
“He added that whilst the JPY was excessively strong when it traded in the range of 70 to the dollar in the past, it was excessively weak in the 120 range”.
“He further mentioned that based on effective exchange rates, the JPY cannot be said to be either strong or weak right now”.
“Separately, Japan’s Finance Minister Aso said that he will keep a close eye on foreign exchange market, adding that FX movements have implications for the economy. The next key data release comes on Friday in the form of Nikkei services and composite PMIs for April”.