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10 Dec 2014
Long USD/JPY, target 128 levels – BNP
FXStreet (Barcelona) - Analysts at BNP Paribas, anticipate Yen to weaken further due to negative interest rates and the Japanese investor outflows, targeting 128 levels for the USD/JPY pair.
Key Quotes
“Despite the fact that USDJPY has already rallied substantially, we believe there is more to come in 2015. The BoJ’s ‘shock and awe’ approach has been effective in triggering quick JPY sell-offs. However, the underlying story of Japanese investor outflows, driven by increasingly negative interest rates at home, is only starting to play out and should drive the yen lower, even in the absence of further BoJ policy action. The risk is that the move becomes too fast for the MoF’s liking, but as we saw in late 2014, mild jawboning merely slows the USDJPY uptrend.”
Key Quotes
“Despite the fact that USDJPY has already rallied substantially, we believe there is more to come in 2015. The BoJ’s ‘shock and awe’ approach has been effective in triggering quick JPY sell-offs. However, the underlying story of Japanese investor outflows, driven by increasingly negative interest rates at home, is only starting to play out and should drive the yen lower, even in the absence of further BoJ policy action. The risk is that the move becomes too fast for the MoF’s liking, but as we saw in late 2014, mild jawboning merely slows the USDJPY uptrend.”