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USD/JPY seen at 112.00 in 3-month – Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Senior Analyst at Danske Bank Morten Helt sees the BoJ incurring in further easing in the near term and thus pushing spot to the 112.00 handle in 1-3 months.

    Key Quotes

    “In the short term, we think the strong downtrend in USD/JPY is likely to persist – at least until disrupted by policy action. If USD/JPY continues to fall further in the coming weeks, the risk is that the BoJ might act before its monetary policy meeting on 28 April”.

    “Stretched short-term FX drivers such as positioning and technical indicators imply BoJ easing might be able to counter the strong downward pressure on USD/JPY stemming from fundamentals. We look for a stabilisation of USD/JPY above 110 targeting the cross at 112 in 1-3M”.

    “We remain bearish on the JPY on a six- to 12-month horizon versus both the
    USD and EUR due to a combination of cyclical and monetary policy divergence and we recommend positioning for a weaker JPY ahead of 28 April”.
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