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14 Jan 2015
USD may target 125 by year-end – DB
FXStreet (Barcelona) - Analysts at Deutsche Bank remain bearish on the Yen, noting that Yen is likely to continue its fall against USD strength, and forecast 125 levels for the USD/JPY pair by year-end.
Key Quotes
“We remain bearish on the yen, forecasting a move up to 125 by the end of the year. This is the least bearish we have been since the uptrend began however, with the current account deficit showing signs of improvement, and the portfolio outflow picture on both the equity and fixed income front moderating.”
“The BoJ will also find it more difficult to announce another round of easing given the current scale of asset purchases, reducing the scope for additional surprise.”
“Still, we remain yen bears with the GPIF/broader asset reallocation trade complete and the yen likely being a continued victim of ongoing dollar strength.”
Key Quotes
“We remain bearish on the yen, forecasting a move up to 125 by the end of the year. This is the least bearish we have been since the uptrend began however, with the current account deficit showing signs of improvement, and the portfolio outflow picture on both the equity and fixed income front moderating.”
“The BoJ will also find it more difficult to announce another round of easing given the current scale of asset purchases, reducing the scope for additional surprise.”
“Still, we remain yen bears with the GPIF/broader asset reallocation trade complete and the yen likely being a continued victim of ongoing dollar strength.”