USD/JPY: top in place? – TDS

In opinion of FX Strategists at TD Securities, the greenback could have carved a top vs. its Japanese counterpart.

Key Quotes

“We look for pockets of periodic strength for the greenback in Q2 but also think we have seen the peak in USDJPY”.

“This view reflects a few important macro drivers: longer-run valuation, convergence with the US economy, steps toward policy normalization and the reversal of capital flows built up over the past three years. As the Trump trade unwinds, a steady drop in risk appetite should also benefit JPY”