USD/JPY – BULLISH BIAS – (101.70-103.50).
The recent geopolitical risk declining supported risk-on mode and JPY selling. JPY is the weakest currency amongst major currencies. Next week, USD/JPY will move upward to reach 103-level, we expect.
The US consumer price index and July FOMC minutes are key triggers of USD/JPY next week.
The recent food price hiking was calming down and may be just a noise as the Fed chief mentioned in June. In the upcoming minutes, the normalization of monetary environment may be discussed and market will be aware of the timing of the Fed’s policy rate hike.
The US 2yr yield widening may support USD/JPY buying further.
BTMU