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9 Apr 2015
USD/JPY year-end target at 123.00 – BTMU
FXStreet (Barcelona) - Takahiro Sekido, Japan Strategist at Bank of Tokyo-Mitsubishi UFJ, expects Yen to modestly deprecate against the dollar as inward investment increases, and maintaining a year-end target for USD/JPY at 123.00.
Key Quotes
“As the overseas shift of production slows, some Japanese companies have already started to return to Japan. Companies that set low USD/JPY breakeven rates, like precision machinery, automotive, and electronics makers, have started to expand operations in Japan again. They recognize Japan as an investment opportunity in terms of cost-competitiveness.”
“Looking forward, FDI flows may slow. Japanese companies will likely maintain their FDI for the time being. They will surely reconsider Japan as an investment destination.”
“Looking ahead, we will be watching Japanese companies’ investment stance (overseas or domestic) and cash repatriation flows; inward investment from overseas to Japan; and external risk factors surrounding the yen, as these may help dampen further upside for USD/JPY.”
“We maintain our view for a moderate yen depreciation against the US dollar.”
“Japanese investors (public pensions and financial institutions including JP postal bank), households (via investment trust and non-yen bonds), and companies (imports and FDI) and will likely keep selling yen. Our year-end forecast for USD/JPY is currently at 123.00.”
Key Quotes
“As the overseas shift of production slows, some Japanese companies have already started to return to Japan. Companies that set low USD/JPY breakeven rates, like precision machinery, automotive, and electronics makers, have started to expand operations in Japan again. They recognize Japan as an investment opportunity in terms of cost-competitiveness.”
“Looking forward, FDI flows may slow. Japanese companies will likely maintain their FDI for the time being. They will surely reconsider Japan as an investment destination.”
“Looking ahead, we will be watching Japanese companies’ investment stance (overseas or domestic) and cash repatriation flows; inward investment from overseas to Japan; and external risk factors surrounding the yen, as these may help dampen further upside for USD/JPY.”
“We maintain our view for a moderate yen depreciation against the US dollar.”
“Japanese investors (public pensions and financial institutions including JP postal bank), households (via investment trust and non-yen bonds), and companies (imports and FDI) and will likely keep selling yen. Our year-end forecast for USD/JPY is currently at 123.00.”