Still sees potential downside risk
Barclays Capital FX Strategy Research notes that the USDJPY remains near the bottom of the YTD range around 109.00. They argue that, "Most f the USDJPY weakness was due to rising political uncertainty in the US rather than any Japan-specific factor. Indeed Japan's solid CPI data had minimal impact on the currency.
Nevertheless, they argue that the US debt ceiling and government shutdown risks could continue to dictate the market sentiment in the coming weeks, potentially weighing on the pair".
eFX provides institutional views on the Forex market and specific currency pairs. To subscribe (or try out their service), CLICK HERE.
