USD/JPY fade the rallies – TDS

In view of strategists at TD Securities, occasional bullish attempts in spot remain selling opportunities.

Key Quotes

“The JPY has traded on a mix of political dysfunction and risk appetite rather than interest rate differentials”.

“The pullback in the US 2y rate has helped, but we only see limited room for USDJPY to rally on some modest repricing of the Fed in H2”.

“Rather, USDJPY is more likely to trade on a mix of growth convergence, geopolitical tensions and risk appetite, which favor fading rallies”.