USD/JPY: Failed To Break Above 111 In August; Where To From Here? – TD

TD FX Strategy Research notes that USD/JPY has failed to break above 111 on a few attempts over the past month.

"We believe this reflects a mix of factors related to hedging dynamics, repatriation of flows, risk appetite, valuation and loose financial conditions in the US that have kept US yields at bay.

We believe this backdrop is likely to remain unchanged, leaving the pair confined to the 108 to 112 range for the time being," TD argues.

Source: TD Securities ResearchOriginal Article