8 Dec 2014
USD/JPY set to hit 125 by end-2014 - Deutsche Bank
FXStreet (Bali) - According to Deutsche Bank FX Strategy Team, USD/JPY looks poised to reach 125 by end-2014 and 130 by end-2015.
Key Quotes
"Announcements of QQE2 by the BoJ and reallocation by the GPIF on Oct 31 strongly confirmed the acceleration and sustainability of USD/JPY’s uptrend. The expected victory of the Prime Minister Abe-led coalition in the Lower House election on Dec 14 will further reinforce the rise of USD/JPY and Nikkei under Abe-nomics."
"The US economy is a main driver of USD/JPY higher and is expected to keep growing at +3%. We see USD/JPY reaching 125 by end-2014 and 130 by end-2015. While the recent rapid rally of USD/JPY will have to correct at some point, it will be firmly supported by Japanese investors buying-on-dips and importers who have not secured sufficient amounts of USD yet."
Key Quotes
"Announcements of QQE2 by the BoJ and reallocation by the GPIF on Oct 31 strongly confirmed the acceleration and sustainability of USD/JPY’s uptrend. The expected victory of the Prime Minister Abe-led coalition in the Lower House election on Dec 14 will further reinforce the rise of USD/JPY and Nikkei under Abe-nomics."
"The US economy is a main driver of USD/JPY higher and is expected to keep growing at +3%. We see USD/JPY reaching 125 by end-2014 and 130 by end-2015. While the recent rapid rally of USD/JPY will have to correct at some point, it will be firmly supported by Japanese investors buying-on-dips and importers who have not secured sufficient amounts of USD yet."