JPY: Sell on rallies theme to persist - ING

Viraj Patel, Research Analyst at ING, suggests that the downward trend of USD/JPY is likely to persist, supported by the protectionist measures from the US administration.

Key Quotes

“With global trade wars in focus – and the yen the antithesis of US protectionist policies – we expect the downward bias for USD/JPY to remain firmly in place over the coming months. But look for USD/JPY to stay anchored around the 105 level this week in the absence of an escalation in the trade war narrative or any further leg lower in global equities – while equally, Japanese fiscal year-end and a negative USD bias from White House policy uncertainty should limit the scope for any significant upside in the pair (with the sell-on-rallies theme persisting).”