New York Mellon Bank: Arbitrage trading will further Close Position, and the JPY/USD may rise to 100

On August 9th, Jinshi Data reported that the Arbitrage trades financed in Japanese yen will further Close Position, and over time, the Exchange Rate of Japanese yen against the US dollar may rise to the level of 100. Bob Savage, Director of Market Strategy and Insights at Mellon Bank of New York, wrote in a report that investors are still too bearish on the Japanese yen, and shorts positions will continue to be reduced. An analysis shows that the current Japanese yen at the level of 1 US dollar to 147 is too cheap, and over time, the fair value of the yen should be closer to 100. Savage predicts that the pain of yen shorts will continue for weeks or even months. Subsequently, further risk-reducing situations will occur, and August will continue to be a month of high Fluctuation.