Forex Flash: USD/JPY outlook bullish on more BoJ easing anticipation - RBS
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USD/JPY
FXstreet.com (San Francisco) - From Greg Gibbs, FX Trading Strategist at RBS: "We see the USDJPY within a new rising trend that may surprise how quickly it moves towards 90. However, it has shown some pause around the highs early this year just above 84.
Mr. Gibbs continues: "The fast money is long and wondering if they should take profit and the slow money may be waiting to the New Year to set investment strategies. As such, the BoJ meeting this week could be set back for the pair if the BoJ does not deliver a 10tn further expansion of its APP."
Mr Gibbs adds: "If it does, deliver it is likely to keep the USDJPY rising trend [in-tact] and perhaps drive it to a new high as the market considers the BoJ setting in train a faster balance sheet expansion than planned by the Fed next year ahead of potential new policy steps and a BoJ leadership change early next year."
Mr. Gibbs continues: "The fast money is long and wondering if they should take profit and the slow money may be waiting to the New Year to set investment strategies. As such, the BoJ meeting this week could be set back for the pair if the BoJ does not deliver a 10tn further expansion of its APP."
Mr Gibbs adds: "If it does, deliver it is likely to keep the USDJPY rising trend [in-tact] and perhaps drive it to a new high as the market considers the BoJ setting in train a faster balance sheet expansion than planned by the Fed next year ahead of potential new policy steps and a BoJ leadership change early next year."
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