The strong fundamentals of the US economy are positive for risky sentiment in the financial market, which can eventually stimulate the purchase of the dollar and a break of 114 against the yen, says Bart Wakabayashi, manager of the Tokyo branch of the American Bank of State Street Bank & Trust. Strong US economic data, such as housing sales last week, will lead to a USD / JPY rise.
Given the rise in Fed rates, investors are focused on differential interest rates in Japan and the US. The thin liquidity makes the courses vulnerable to sudden movements under the influence of individual client orders, when importers need US dollars. Their demand, as a rule, grows at the end of the year.