USD/JPY: Real Flows In The Driver Seat: Levels To Watch – BTMU

BTMU FX Strategy Research notes that real flows are currently driving USD/JPY movements.

"Foreign investors bought JPY1.7 trillion of JPY securities Aug 13-19, with recent net inflows into short tenure JPY assets hitting JPY2.2 trillion. Foreign investors are still finding wider USDJPY forward points attractive in managing reserve assets. F

But if USDJPY starts to drop, capital outflows among Japanese companies and investors may provide support at 107…USDJPY topside could be heavy as real JPY flows pick up close to month-end," BTMU argues.

BTMU is neutral on USD/JPY around current levels sees the pair trading in a 107.50-110.50 range in the near-term.

Source: BTMU ResearchOriginal Article