Published On: Tue, Apr 17th, 2018

CIBC says USD/JPY to stay supported near 106 this week

According to Ko Haruki, head of financial solutions at CIBC World Markets (Japan)

Haruki says that even if the US takes a harsh stance on trade issues with Japan during the Trump-Abe summit this week, USD/JPY is expected to be supported around 106.

He argues that there is a risk for the US to come up with a harsh attitude on Japan since the US’ stance toward China and NAFTA is easing, noting that there is “no such incentive” for the US to ease up against Japan.

However, he says that if USD/JPY is to fall under such pressures it will stay supported with Japanese demand likely to emerge if the pair slides towards 106 levels.

Meanwhile, Haruki chips in on other major currencies too in saying that sterling remains underpinned by expectations of a rate hike in May – while the AUD and NZD are retreating as the “rally in high-yielding currencies are coming to a full circle”.

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