USD/JPY: 145 could now prove a solid cap – ING

USD/JPY has reversed sharply from 145. Economists at ING analyze the pair’s outlook.

No need for intervention after all

It looks like investor positioning for a possible Bank of Japan policy tweak (28 July) and the softer US inflation data have foregone the need for intervention.

A sustained move lower in USD/JPY will require some follow-up – i.e. either from the BoJ or US data.

145 could now prove a solid cap. We target 130 for year-end.

USD/JPY – 1M 138 3M 135 6M 130 12M 120