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USD/JPY Bulls to Target 138.5 on Debt Ceiling Progress
It is a relatively busy start to the day for the USD/JPY. Japanese trade figures for April will draw interest. Following the better-than-expected Q1 GDP numbers on Wednesday, better-than-expected trade data would fuel bets on a shift in the Bank of Japan’s ultra-loose policy. Economists forecast the trade deficit to narrow from ¥755.1 billion to ¥613.8 billion. However, the devil will be in the details. A larger-than-expected fall in imports would raise demand concerns. Economists forecast imports to fall by 0.3% and exports to rise by 3.0%. Beyond the economic calendar, we expect further market reaction to US ... (full story)