USD/JPY on course towards 110 - Natixis

Nordine Naam, Research Analyst at Natixis, notes that t

Key Quotes

“The Japanese yen’s correction was sharper, however, with the USD/JPY recovering back above 106.5. The pair remains correlated to US long-term interest rates, which have risen sharply fuelled by concerns inflation is set to soar during the Trump presidency. By the end of the year, the USD/JPY could appreciate a touch more towards 110 in the face of a stronger dollar, providing a small respite for the Bank of Japan.”