USD/JPY: Risks for Japanese yen remain tilted to the downside – ING

The USD/JPY will likely break above the 110 during the current week according to analysts at ING. But their one-month target is 108.00. 

Key Quotes: 

“The yen was caught in the crossfire late this week as the US-China trade deal was signed off by President Trump and the Conservative party won by a large margin in the UK. While some more details on the trade deal should come through later in the week, the risks for JPY remain tilted to the downside as the recent round of risk appetite keeps drying up haven demand.”

“Markets will also be watching the central bank of Japan's meeting on Wednesday. The rate announcement comes after a week of Japanese central bank speakers commented on monetary policy last week. First, Governor Kuroda referred to the global economic outlook for 2020 as “bright”, but his deputy, Masayoshi Amamiya, later said that the central bank is ready to add more stimulus if downside risks rise. We struggle to see any room for a material surprising tilt in the BoJ stance this week, which means the yen is unlikely to find anything to grab on to avert another unhappy week.”