I posted earlier on BNP looking for a rate hike again in the US at the March FOMC meeting
More from BNP (note dated January 6):
A falling USDJPY is "inconsistent" with higher US front-end yields recently
- On the other side of the equation, the Bank of Japan is not actively weakening the JPY and will not 'tolerate idiosyncratic strength either"
- US - Japan rate differentials are likely to get wider, and thus "carry and positioning are increasingly against USDJPY shorts"
BNPP recommends buying USDJPY at 118.60
- Stop loss at 116.90
- Profit target 123.70
ps. For today: Heads up for USD/JPY traders - large option expiry at 119.00 today