USD/JPY at 152 is a possible Bank of Japan intervention trigger – Credit Suisse

<p>Economists at Credit Suisse are looking for (a lot) of upside for USD/JPY ahead, saying interventions is a long way off. </p><p>The point out that:</p><ul><li>New BoJ governor Ueda’s dovish stance at his first meeting in charge on 28 April catalysed an 8% USD/JPY rally in the two months that followed.</li></ul><p>And there is room higher ahead of the next policy meeting:</p><ul><li>With the immediate inflation outlook likely to be upgraded at the July 28 – 29 meeting, the market will once again look at JPY upside trades ahead of that. </li></ul><p>The economist team say to watch wage data next week:</p><ul><li>The July 7 release of cash earnings data will be key as more weak data would disappoint expectations. </li></ul><p>On yen implications:</p><ul><li>In the meantime, the trading range for USD/JPY can stay wide at 135-152, with the latter level a possible intervention trigger.</li></ul><p>–</p><p>The USD/JPY trend is strong:</p><p>Check out Greg's analysis here:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.