Forex Flash: USD/JPY consolidates from overnight high – OCBC Bank

Having posted an overnight high at 94.06, USD/JPY consolidated overnight but may look to retest the highs notes Emmanuel Ng of OCBC Bank.

He feels that despite the restracement, a fairly steady stream of dovish official Japanese rhetoric (latest from the BOJ’s Sato) may continue to pin down the JPY. Elsewhere, he writes, “We also note the lack of explicit discomfort with the Japanese monetary policy slant from the supranational agencies, lending little credence to news/political chatter with respect to currency wars. With the BOJ expected to be the most dovish central bank on the street, investors may continue to deem a weak-JPY trade as the path of least resistance for now. In the interim, the USD/JPY may run into some headwinds ahead of the 94.10 neighbourhood while supports are expected at 93.00 and then 92.40.”