USD/JPY: BNP gives 3 reasons why traders should buy pair in the short term

Today, BNP Paribas bank listed 3 factors that should encourage forex traders to bet on an increase of the USD/JPY:

"First, the USD/JPY has been particularly sensitive to US rates since the beginning of the year, and the fact that markets are seeing an upward revision of the likelihood of a short-term rate increase by the Fed should benefit the pair.

Second, we anticipate a 0.20% rate decrease during the 29 July BoJ meeting.

Finally, we expect that the Japanese government will announce an additional budget of 10-15,000 billion yen, which could be interpreted as a return to "Abeconomics", which could increase Japanese demand for foreign assets and bring down the JPY."