USD/JPY: Trading range can stay wide at 135-152, the latter a possible intervention trigger – Credit Suisse

USDJPY remains the most controversial in the G10 FX space. Economists at Credit Suisse analyze the pair’s outlook.

JPY still stymied by BoJ

New BoJ governor Ueda’s dovish stance at his first meeting in charge on 28 Apr catalysed an 8% USD/JPY rally in the two months that followed. With the immediate inflation outlook likely to be upgraded at the 27-28 Jul meeting, the market will once again look at JPY upside trades ahead of that. 

The 7 Jul release of cash earnings data will be key as more weak data would disappoint expectations. 

In the meantime, the trading range for USD/JPY can stay wide at 135-152, with the latter level a possible intervention trigger.