The April Balance of Payments data tells us USDJPY’s lower bound will remain robust – The MUFG Global Markets Podcast

The June FOMC confirmed that it plans to keep interest rates low, maintain monetary easing, and implement yield curve control. Looking ahead, USD could weaken and downward pressure on US rates could build. Near the end of this quarter, Japanese exporters will likely cover their USDJPY positions reinforcing this price action. However, we expect USDJPY’s lower bounds to remain robust because of Japanese Yen selling flow. 

In this episode Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses JPY selling in the April Balance of Payment data, as well as selling from Japanese exporters and investors, and updates his view on the Yen, JPY rates and USDJPY basis.