USD/JPY: FOMC & risk aversion remain near-term risks – OCBC

FXStreet (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank, sees the pair remaining in the 122.00-124.00 range ahead of the key FOMC meeting.

Key Quotes

“The FOMC (and potentially any risk aversion jitters) this week may determine near term prospects for the pair with Kuroda’s comments last week still putting the hurt on USD bulls.”

“On the CFTC front, net leveraged JPY shorts increased in the latest week but we expect that these shorts may have been materially dented post-Kuroda. In the interim, the 122.00-124.00 range may be expected to hold pending further cues.”

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