At the end of last week, Japanese Minister of Finance, Kato, indicated that he would seek to talk about the FX with US Treasury Secretary, Besent, this week. This has driven investors to return to long positions in JPY. In a 5 -day perspective, the JPY is the G10 currency with the best performance, says Rabobank FX analyst Jane Foley.
Possibility of a movement to USD/JPy 140 in a 12 -month perspective
“From the point of view of Japan, the most important element of its commercial conversations with the US is probably the issue of concessions for their car exporters. While Japan has a strong position in commercial negotiations given its significant IED in the US, the moment of the elections of the upper house of Japan means that the government will be under pressure not to offer too many concessions to the US Inflation, it is possible that the MOF is not very reluctant to a moderately stronger value for the JPY in the medium term, although it is not clear how this would be implemented. “
“While Uchida’s comments were encouraging for the JPY bulls, the publication of the last week of the GDP of the first quarter (which showed that the economy was first contracted in a year) underlines the difficult position of those responsible for the Boj’s policies. In view of the winds against the growth from Trump’s tariff rates in a 6 -month perspective. “
“While we see the risk that the USD/JPY could be maintained around level 145 in a perspective of 1 to 3 months, we continue to see the possibility of a movement to USD/JPY 140 in a 12 -month perspective under the assumption that the box can gradually adjust the monetary conditions in this cycle.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
