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4 Feb 2015
USD/JPY long term target 125.00 – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, forecasts USD/JPY to move towards 125 over the next 12 months.
Key Quotes
“The sharp weakening in the value of the yen meant that the BoJ was the clear winner in the currency wars through most of last year.”
“Recent comments from government officials that they were cautious about further yen losses may be an attempt to create a period of consolidation over the coming weeks.”
“That said, we maintain the view that USD/JPY is likely to move towards the 125 level on a 12 mth view.”
“The BoJ is manitaining a QQE plan to expand the monetary base by Y80 trn a year. In contrast the Fed is preparing the ground for a rate hike. In addition, news that President Obama is planning to tax US firms’ USD2 trn overseas cash pile should strengthen the USD’s positive bias.”
Key Quotes
“The sharp weakening in the value of the yen meant that the BoJ was the clear winner in the currency wars through most of last year.”
“Recent comments from government officials that they were cautious about further yen losses may be an attempt to create a period of consolidation over the coming weeks.”
“That said, we maintain the view that USD/JPY is likely to move towards the 125 level on a 12 mth view.”
“The BoJ is manitaining a QQE plan to expand the monetary base by Y80 trn a year. In contrast the Fed is preparing the ground for a rate hike. In addition, news that President Obama is planning to tax US firms’ USD2 trn overseas cash pile should strengthen the USD’s positive bias.”