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”. For more information, read our latest forex news.