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The declining FX volatility may keep the Japanese Yen pressured by funding demand for carry trades, making USD/JPY even more reliant on a move in USD rates, economists at ING say.
The drop in FX volatility after last week’s action is being helped by the PBoC's stabilisation of the Yuan and should not help the Yen, which remains the most popular funding currency for carry trades.
Verbal interventions in Japan and the softer Dollar momentum are helping a bit, but the current environment suggests a recovery in JPY remains even more strictly tied to US rates breaking lower.
Our call remains bearish on USD/JPY moving forward, but in the very short term, the pair may retest the 152.00 ‘verbal intervention’ area.
風險提示:本文所述僅代表作者個人觀點,不代表 Followme 的官方立場。Followme 不對內容的準確性、完整性或可靠性作出任何保證,對於基於該內容所採取的任何行為,不承擔任何責任,除非另有書面明確說明。
