USD/JPY: Range-Bound Moves To Continue N-Term With Eyes On Nikkei - Barclays

Barclays Capital FX Strategy Research discusses USD/JPY near-term outlook in light of the recent price action of the Nikkei Index.

"Nikkei rose to the highest level since March at the beginning of last week in response to higher UST yields, but the pair gradually fell to a 113 handle. Nikkei hit a 26-year high and 50% retracement of its post-bubble decline, only to fall sharply thereafter, driving USDJPY lower with it.

We still expect USDJPY to remain in the recent range for the near term, but Nikkei moves will be watched closely," Barclays argues.

Source: Barclays Research