Trump, BOJ could be the ideal divergent theme for USD/JPY bears

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We've just seen the BOJ deliver a hawkish hike, where they upgraded their inflation forecasts and cited rising wage pressures. This leaves the door open for further hikes this year. Meanwhile, Trump is now trying to strongarm the Fed and global central banks to lower interest rates immediately. Together, this is the ideal divergent theme currency traders crave. And the icing on the cake for USD/JPY bears would be if Trump begins his attack on a strong USD (which I think he will).

Matt Simpson, Market Analyst at City Index and Forex.com

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