JPY: Global risk sentiments to remain the main driver of the
JPY
From Barclays:
Amid a sharp deterioration in global risk sentiments, the JPY outperformed
other currencies on flight-to-quality bids since the beginning of 2016. USDJPY
has fallen close to 117, or the lowest level since last August, while the JPY
NEER reached the pre-QQE2 high (Figure 5). Fluctuations in global risk
sentiments will likely remain the main driver of the JPY this
week.Further weakness in global
equity markets may drive USDJPY lower to test 115, the resistance level held
since the BoJ delivered QQE2 in October 2014.
