USD/JPY heading towards 105 - Natixis

Research Team at Natixis, suggests that the USD/JPY pair remains under the influence of external factors, notably the performance of the US markets.

Key Quotes

“In particular, the stabilisation of the equity markets and of US long rates has helped to steady the pair. Our view is that the USD/JPY could appreciate temporarily towards 105 in the run-up to the FOMC meeting on 2 November and to the publication of the October Employment situation report. The Bank of Japan is looking to the Federal Reserve to indirectly weaken the yen against the US dollar, bearing in mind Japan’s central bank has failed to achieve this despite pursuing an ultra-accommodating monetary policy.”