19 Aug 2015
USD/JPY aims to 128.00 in 6-month – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, suggested the pair could visit the area around 128.00 in a 6-month view.
Key Quotes
“We have brought forward additional USD/JPY appreciation as the first rate hike from the Fed is moving closer. We now target the cross at 125 (previously 123) in 1M and 128 (125) in 3M”.
“Following a possible rally around the first Fed hike, we expect USD/JPY to enter another period of range trading. We have raised our 6M and 12M forecast to 130 from 126 and 127, respectively, as a general depreciation among Asian currencies should leave room for more USD/JPY upside”.
“While USD/JPY is expected to remain supported by higher US interest rates we expect the cross to be trendless and more volatile in the medium term as stretched valuations in PPP and real effective terms are likely to curb upside potential. Moreover, support to the JPY should increase as the Japanese trade balance looks set to continue to improve”.
Key Quotes
“We have brought forward additional USD/JPY appreciation as the first rate hike from the Fed is moving closer. We now target the cross at 125 (previously 123) in 1M and 128 (125) in 3M”.
“Following a possible rally around the first Fed hike, we expect USD/JPY to enter another period of range trading. We have raised our 6M and 12M forecast to 130 from 126 and 127, respectively, as a general depreciation among Asian currencies should leave room for more USD/JPY upside”.
“While USD/JPY is expected to remain supported by higher US interest rates we expect the cross to be trendless and more volatile in the medium term as stretched valuations in PPP and real effective terms are likely to curb upside potential. Moreover, support to the JPY should increase as the Japanese trade balance looks set to continue to improve”.