Barclays Capital FX Strategy Research notes that USD/JPY has remained in a tight range around 110-112 since mid-May amid declining UST yields and solid risk asset performances.
"A lack of any market-moving events out of Japan, should keep USDJPY driven by global market dynamics, with potential risk events such as the ECB meeting, UK elections, and US politics.
Short-term USDJPY volatility is revisiting the YTD lows, likely due to low realized vol and lack of near-term catalysts," Barclays adds.
USD/JPY is trading circa 110.50 as of writing.
Source: Barclays ResearchOriginal Article
