JPY: Big downside risks this week - ING

Viraj Patel, Research Analyst at ING, suggests that talk of a global protectionist shift is likely to weigh on risk sentiment this week, which makes USD/JPY particularly vulnerable to a downside breakout.

Key Quotes

“Add to this nascent signs of the BoJ shifting away from an ‘ultra-loose’ monetary bias to a ‘slightly less ultra-loose’ stance at this week’s policy meeting (Fri) – and there is every chance USD/JPY could breach the 105 level. In the worst case, we could see a slide down to 102.50 (the post US election low is 101.20). There may be little the MoF can do in any market that takes USD/JPY down to these levels.”