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20 May 2014
USD/JPY: Expect a return to 105.00 by year end - Rabobank
FXStreet (Bali) - Jane Foley, Senior Currency Strategist at Rabobank, expects USD/JPY to crawl towards 105.00 by year end.
Key Quotes
"In addition to BoJ decisions there are a couple of other factors which could prove to be crucial in determining the path of USD/JPY through the remainder of the year and beyond."
"The first is geo-political risk. There is currently a risk that investors are treating the crisis in Ukraine with too much complacency. Further deteriorating in the region could lead to safe haven demand for the yen. Also, crucial for the direction for USD/JPY will be the ability of the USD to launch a broad based recovery."
"The greenback has been out of favour this year as the market become accustomed to the fact that although the Fed is tapering the size of its QE programme that actual tightening remains some way away."
"That said, we expect structural improvements in the US economy to enhance demand for the USD medium-term."
"While USD/JPY may remain on the back foot in the near-term, by year end we expect a crawl towards USD/JPY105 to be evident."
Key Quotes
"In addition to BoJ decisions there are a couple of other factors which could prove to be crucial in determining the path of USD/JPY through the remainder of the year and beyond."
"The first is geo-political risk. There is currently a risk that investors are treating the crisis in Ukraine with too much complacency. Further deteriorating in the region could lead to safe haven demand for the yen. Also, crucial for the direction for USD/JPY will be the ability of the USD to launch a broad based recovery."
"The greenback has been out of favour this year as the market become accustomed to the fact that although the Fed is tapering the size of its QE programme that actual tightening remains some way away."
"That said, we expect structural improvements in the US economy to enhance demand for the USD medium-term."
"While USD/JPY may remain on the back foot in the near-term, by year end we expect a crawl towards USD/JPY105 to be evident."