USD/JPY: Can key resistance hold against a strong Dollar? – ING

An improvement in Japanese manufacturing sentiment could strengthen the Bank of Japan’s (BoJ) confidence that inflation is holding steady near 2%. ING’s Chris Turner attributes the brighter mood to demand for semiconductors and data centres, robust corporate profits and solid wages.

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"All of the above can feed into the Bank of Japan's view that inflation is now stable at 2.00% and its accommodative monetary policy can be reined in."

"The broadly strong dollar means that USD/JPY could easily push through resistance at 159, but we increasingly think investors will be looking to acquire cheap yen should USD/JPY push above 160 again."

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(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)