USD/JPY advanced alongside USÂ yields. Can it continue higher? Here is a view on both USD/JPY and AUD/JPY:
Here is their view, courtesy of eFXdata:
 Bank of America Merrill Lynch Research discusses USD/JPY outlook from the flows perspective and notes anticipated bids in USD/JPY and other cross yen pairs by Japanese investors appear to be emerging, judging from the pair’s price action and major lifers’ investment plans for the new fiscal year, which have been and will be announced throughout this week.
“The Abe-Trump summit last week confirmed the two countries would continue to focus on their shared agenda of national security, which keeps the bilateral trade tension contained at least for the time being.
Abe’s struggle to regain lost public support poses key political risk and the geopolitical risk on North Korea carries uncertainty heading into a potential Trump-Kim summit, but we think the positive flow for USD/JPY is gradually outweighing negative political risk,†BofAML argues.Â
“We remain constructive on USD/JPY and also long AUD/JPY*,†BofAML adds.Â
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