Senior Analyst at Danske Bank Morten Helt suggested the pair could test the 120.00 area in a 3-month horizon. Key Quotes “JPY appreciation has accelerated in 2016 due to negative risk sentiment on global markets”. “We believe wage increases will be higher than last year which should remove some of the pressure on BoJ to ease further. With the BoJ expected to continue its current QQE program at JPY80trn until 2017 and additional hikes from the Fed to some extend already priced, we expect USD/JPY to be caught in a 118-123 range in the coming 12 months”. “We have lowered our forecast profile (main scenario) and now look for a gradual increase to118 (124) in 1M, and 120 in 3, 6 and 12M (was 124, 125 and 125, respectively) as relative rates is expected to be less supportive for USD/JPY going forward”. For more information, read our latest forex news.