USD/JPY trend continues to be down – Danske Bank

Vladimir Miklashevsky, senior economist at Danske Bank, suggests that USD/JPY pair is consolidating around 108 but they believe the trend continues to be down in the coming months towards around 107.

Key Quotes

“US inflation expectations remain on a downtrend but yields are more stable for now. We view it as unlikely that the Fed would invite in a tightening via real rates and the upcoming FOMC meeting could very well be the next catalyst for a stronger JPY as the BoJ remains firmly side-lined.”