The news that the US and China have reached an agreement that substantially reduces commercial tariffs between them for 90 days have unleashed a wave of optimism that has supported risk assets and has weighed on safe shelters. In line with this, the JPY is the G10 currency that behaves worse in a session view, having fallen almost 1.6% against the dollar. We have anticipated that this quarter will bring short coverage in favor of the USD. That said, we hope that the JPY bulls prevent the movement from spreading far beyond the current levels and we maintain a 12 -month forecast of USD/JPY 140, says Rabobank FX analyst Jane Foley.
JPY, the weakest of G10, while the risk wave hits safe shelters
“The USD is the G10 currency that behaves worse so far this year. Since the announcement of Trump tariff They were looking for American ‘exceptionalism’.
“Last week, the United Kingdom became the first country to announce a limited commercial agreement with the US a month ago there were speculation that this recognition could have been taken by Japan. As we have argued many times on this page, Japan has a relatively strong hand when entering commercial conversations with the US He sees himself as a collaborator in technology.
“The hardening of the monetary conditions implicit in this year’s JPY profits also counteracts the need for the BOJ to hur The space for the coverage of shorts in favor of the USD is destined to support the dollar this quarter.
(This story was corrected to reflect, in the headline, that Rabobank maintains its 12 -month forecast for the USD/JPY pair in 140.00).
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.
