USD/JPY to rise further despite the authorities – Nomura

By FXStreet FXStreet (Guatemala) – Analysts at Nomura explained that although the consensus is for USD to strengthen as the Fed rate-hiking cycle begins, there remains widespread skepticism about the USD/JPY‘s upside potential.

Key Quotes:

“This is because one of the likely assumptions is the political element: both the Japanese and US authorities do not want a further USD/JPY rally.”

“However, we think such an assumption appears to be groundless. Based on (1) the recent JPY appreciation on a REER basis, (2) softening food and energy prices in Japan, and (3) strong US jobs growth, we believe policymakers have significant room to allow USD/JPY to rise further.”
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Source:: FX Street