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28 May 2015
USD/JPY heading towards 125.00 by year-end – ANZ
FXStreet (Edinburgh) - Strategist Richard Yetsenga at ANZ sees the pair marching towards the 125.00 area by end 2015.
Key Quotes
“Our forecasts for USD/JPY to continue to show some strength over time (to 125 by end-2016) embody the view that the broader trend in the USD will likely be the key driver of the broader trend in USD/JPY”.
“However, the next leg of the USD/JPY trend is likely to show substantially more volatility than the previous step-like moves higher”.
“The BoJ’s being sidelined does, in our view, leave the USD/JPY more exposed to any global surprises of the negative risk variety”.
“For this reason this third phase of yen weakness offers poorer risk-reward than the two previous phases”.
Key Quotes
“Our forecasts for USD/JPY to continue to show some strength over time (to 125 by end-2016) embody the view that the broader trend in the USD will likely be the key driver of the broader trend in USD/JPY”.
“However, the next leg of the USD/JPY trend is likely to show substantially more volatility than the previous step-like moves higher”.
“The BoJ’s being sidelined does, in our view, leave the USD/JPY more exposed to any global surprises of the negative risk variety”.
“For this reason this third phase of yen weakness offers poorer risk-reward than the two previous phases”.