BTMU FX Strategy Research argues notes that Japanese investors repatriating revenue and exporters buying JPY could continue to support a USDJPY drop in mid-July.

“Such moves would not be risk-off moves, but support JPY appreciation positively. Yellen has not been very dovish and Japanese investors may support the lower bound of USDJPY, as they need more investment opportunities abroad.

Weakening confidence in the Trump and Abe administrations of late may support a weaker USD, while JPY selling may not pick up much amidst the uncertain geopolitical landscape,” BTMU argues.

BTMU is bearish on USD/JPY this week expecting the pair to be contained in 110-114 range in the near-term with downside risk.

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