USD/JPY to stay bearish on a strategic horizon – Danske Bank

Amid risk-on sentiment yesterday USD/JPY traded above 149 yesterday, Danske Bank's FX analyst Jens Nærvig Pedersen reports. 

BoJ seems to be ready to hike rates again

"Early Wednesday, the BoJ is widely expected to keep rates unchanged. Reflation momentum remains intact in Japan after big corporates decided to meet their unions' quite high wage in demands last week. The spring will show to what extent, this spills over to smaller businesses, which will be key to further rate hike potential." 

"We expect the BoJ will be ready to hike rates again in July and believe the FOMC meeting on Wednesday to be a bigger deal for yen crosses than the BoJ. We still favour short USD/JPY on a strategic horizon."