JPY: Balancing geopolitical tail risks and US data - ING

Signs of a cyclically declining dollar - driven by a multitude of factors including diminished Fed tightening cycle expectations and heightened US/global political risks - is keeping USD/JPY firmly below the 110 level, according to analysts at ING.

Key Quotes

“While North Korea’s Foundation Day did not see another highly-publicised ICBM launch, we expect investors to remain cautious over the coming weeks. In the near-term, a decent set of US data releases could inject some upside bias to pair throughout the week.”

“On the Japanese data side, there's not a lot to note but watch out for BoJ bond buying in the week - which could be used to temper any JPY upside.”