A couple of banks around the place are suggesting 110 as a base for USD/JPY
BTMU (this via eFX)
BTMU FX Strategy Research expects USD/JPY to trade in a 110-113 range in the near-term noticing that the pair's basis has not changed much as of late.
"April trade and securities flow data supported a stronger JPY. Recent weekly securities flow data reflects new outflows by Japanese investors, but not enough to lift USD/JPY beyond 113. This may limit the USD/JPY lower bound 110 near term," BTMU add.
In addition, BTMU thinks that the US and Japanese data due out at the end of the month may not affect the direction of USD/JPY over the near term.
CIBC in Tokyo also:
- Yen cross selling from exporters, month-end demand
- EUR/JPY selling also on Draghi's speech overnight & Italy concerns (early election speculation)
- USD/JPY drop due to cross selling, but should hold 110
