Economists at Barclays Research expect the USD/JPY pair to continue its race higher. The next target aligns at 145 ahead of 150.
Continuing to resist the notion of joint intervention:
“Although actual intervention could bring a substantial correction in light of recently mounting volatility and liquidity conditions, we believe it would be unlikely to spur a major directional change with the US continuing to resist the notion of joint intervention and US-Japan monetary policy divergence, the driver of the USD/JPY’s rise, remaining intact.”
“The market will be watching 144.99 and 145 (psychological threshold), but we do not see any clear technical levels beyond that until resistance sets in at 147.70 (1998 high) and 150 (psychological threshold).”
The Bank of Japan is set to maintain a dovish stance this week. At the same time, the Federal Reserve is set to continue its hiking cycle. Thus, the USD/JPY pair could extend its up move; economists at Commerzbank report.
“The BoJ is likely to be the only G10 central bank to leave its ultra-expansionary monetary policy unchanged this week. This is although prices in Japan are also rising at an increasingly rapid pace. As a result, criticism of Japan’s monetary policy is likely to grow louder and downward pressure on the JPY will remain high.”
“If the Fed acts decisively again tomorrow, USD/JPY could continue to trend upward. After all, the differences in monetary policies are simply too striking.”
USD/JPY Long (Buy)
Enter at: 144.088