USD/JPY: Key resistance under test as Dollar strengthens – ING

The Bank of Japan (BoJ) could gain confidence that inflation is stable near 2%. Supporting this outlook, ING’s Chris Turner highlights improving Japanese manufacturing sentiment, underpinned by semiconductor and data centre demand, robust corporate profits and solid wages.

Japan Data Strengthen Against Dollar Momentum

"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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