USD/JPY: Yen will lag if current period of Dollar weakness does extend after all – ING

USD/JPY is now pushing through 141.00. Economists at ING analyze the pair’s outlook.

USD/JPY may well still bid and should remain in the lead should any US data surprise on the upside

We think there is a chance that the BoJ does tweak its policy set-up at the 28 July policy meeting, when new forecasts will be released. Until that point, however, USD/JPY may well still bid and should remain in the lead should any US data surprise on the upside. 

Equally, the Yen will lag – and will continue to decline on the cross rates – if this current period of Dollar weakness does extend after all.