ANZ forecast that USD/JPY is more likely to reach 150 than 140 in the coming month

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</p><p>ANZ analysts forecast that USD/JPY is more inclined to reach the 150 level rather than descending to 140 in the upcoming month. </p><ul><li>While the weaker employment data may initially provide some relief to the JPY, the longer-term trajectory leans towards a stronger USD.</li><li> ANZ suggests that if the Federal Reserve opts to maintain elevated interest rates, short-end U.S. yields could surpass the 5% mark, pushing USD/JPY to 150. </li><li>
Key Points: <ul><li>Short-Term Relief for JPY: Softer U.S. employment data and yields could offer temporary respite to the JPY. </li><li>Long-Term Direction: The 1-month outlook for USD/JPY leans more towards an upward direction, targeting 150 rather than a decline to 140. </li><li>Federal Reserve Decision: If the Fed keeps interest rates high, short-end U.S. yields could return to above 5%, further boosting USD/JPY to 150. </li></ul></li><li>Implications for traders and investors: <ul><li>Short-term: The JPY may experience a brief respite owing to softer U.S. employment data and yields. </li><li>Medium-term: The 1-month outlook leans towards a stronger USD against the JPY. Positioning for a move towards 150 in USD/JPY may be advisable.</li></ul></li></ul><p>—</p>

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