USD/JPY will struggle to hold above 146/147 levels – ING

Economists at ING analyze the USD/JPY outlook for the coming months.

152 probably was the top

We think 152 probably was the top for USD/JPY and it will struggle to hold above 146/147 levels now. Also, the better terms of trade story is providing external support for the Yen.

Two outside risks: 1) Geopolitics and a spike in oil prices are JPY negative 2) US Treasury Refunding risk on 29 Jan & higher UST yields.

USD/JPY – 1M 145.00 3M 140.00 6M 135.00 12M 130.00