USD/JPY: There is certainly a chance of a break above the 150 level – MUFG
|USD/JPY has moved steadily higher since July. Economists at MUFG Bank analyze the pair’s outlook.
Increased volatility and higher trading ranges are likely if on a break through 150
We would need to see a break of the 150 level in order to spark greater market volatility that could be used to justify intervention. That implies we could see a sharp bounce above 150 initially but then a reversal as Japan intervenes to halt Yen weakness.
We have a neutral bias for the period ahead for USD/JPY reflecting the potential for an upside move initially but also reflecting the unlikelihood that a break higher would be sustained for long.
Increased volatility and higher trading ranges are likely if USD/JPY does break higher through the 150 level.
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