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What Is Weighing on USDJPY?

Orbex

There are a plethora of key issues clouding the outlook for USDJPY at the moment. Firstly, the March FOMC was not as bullish as many hoped and the second hike is not expected until June. Also, it will take further rate hikes for Yen carry to become active enough to boost USDJPY. In addition to this, UST yields have been unexpectedly weaker, draining speculative momentum. Another factor is the withdrawal of Trump’s healthcare reform which has raised doubts over the viability of his other major proposals.

On the Japanese side, PM Shinzo Abe’s approval ratings have fallen following a scandal with his wife, stoking fears over the outlook for Abenomics. Also, settlement-related fund flows in the run up to fiscal year end, such as corporate and institutional profit taking, have weighed on USDJPY. Finally, speculation that the ECB will move to normalise their monetary policy earlier than expected are weighing on USD strength against not only EUR but JPY also.

Read more: https://www.orbex.com/blog/2017/03/what-is-weighing-on-usdjpy/

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Source: https://www.orbex.com/blog/2017/03/what-is-weighing-on-usdjpy/
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