USD/JPY Bearish Outlook Mired by Intervention Threat, Upbeat US Data

In the aftermath of the U.K. Referendum, USD/JPY may face a further decline next week amid the deterioration in risk sentiment, but the fundamental developments coming out of the world’s largest economy may spur a near-term rebound in the exchange rate should the data prints put increased pressure on the Federal Open Market Committee (FOMC) to further normalize monetary policy.