17 Jan 2014
Flash: USD/JPY to target 112.00, BoJ QE risks alive - Rabobank
FXstreet.com (Bali) - According to Jane Foley, Senior Currency Strategist at Rabobank, risks of further QE by the BoJ are intact, which implies the potential for a projected 112.00 target in USD/JPY by the end of 2014.
Key Quotes
The threat that domestic demand could wane will keep alive the risk that the BoJ increases the size of its balance sheet further. In turn this should keep the yen on the back foot."
"The next BoJ policy meeting is scheduled for January 22 and this could offer fresh clues as to the thinking at the Bank."
"We have recently revised up our forecast for USD/JPY to 112.00 on a 12 mth view. This assumes, however, that after a slow start the USD can gradually appreciate during the course of the year."
Key Quotes
The threat that domestic demand could wane will keep alive the risk that the BoJ increases the size of its balance sheet further. In turn this should keep the yen on the back foot."
"The next BoJ policy meeting is scheduled for January 22 and this could offer fresh clues as to the thinking at the Bank."
"We have recently revised up our forecast for USD/JPY to 112.00 on a 12 mth view. This assumes, however, that after a slow start the USD can gradually appreciate during the course of the year."