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