USD/JPY should return towards 115.30 – Natixis

Natixis weekly forex note on G10 trends expects the revival of Trump trade to push USD/JPY back to 115.30 levels.

Key points

The USD/JPY returned to above 113 after the rebound in the dollar. The USD/JPY benefited from the decline in risk aversion and the rise in US long-term interest rates that followed President Trump’s announcements on tax measures. In the short term, the USD/JPY should return towards 115.3 and the EUR/JPY towards 123.3.