USD/JPY supported by potential BoJ easing – OCBC

FXStreet (Edinburgh) - In the view of FX Strategist at OCBC Bank Emmanuel Ng, the pair’s upside remains supported by the likeliness of further easing by the BoJ.

Key Quotes

“Apart from an expected lowering of GDP/inflation forecasts, scattered expectations towards potential for further QQE by the BOJ this week may continue to enable the USD-JPY to base build off the 200-day MA (120.99) in the near term with an initial cap seen towards 121.75”.

“On the CFTC front, net leveraged JPY shorts were reduced in the latest week although we note the subsequent ascent of the pair in the latter part of last week”.