The USD/JPY has been stable in recent months. What is the structure of the basis of the currency in the coming months?
Here is their view, courtesy of eFXdata:
Bank of America Global Research maintains a structural bearish bias on the pair USD/JPY in the coming months.
“Lock in a key foreign economies has led to the deterioration of Japan‘s current-account balance in March and probably in April for a time “investors may have bought the USD/JPY pair‘s-dip. These factors have probably mitigated the downward pressure on the USD/JPY pair is in Mah,” BofA notes.
“Going forward, (1) a the low price of oil (2) bottowe of the export fileAnd (3) slowdown-on-hit outside M&A), and (4) the unattractive the level of non-hedged foreign bonds, should be favourable, or N,” BofA adds.
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