In view of Gibbs, "the first and perhaps easier phase of the USD/JPY rally is now behind us and the outlook now could be a longer period of corrective price action as the market searches for new reasons to drive the USD/JPY and assesses the medium term implications of persistent quantitative easing."
While Gibbs still expects a higher USD/JPY along 2013, "it may now take genuine evidence of Japanese capital outflow to generate this move" Gibbs says. Further, the strategist explains that "there is little evidence of Japanese capital outflow." In fact, Gibbs points at a fair deal of flows selling foreign assets to take profit or rebalance portfolios.
Gibbs concludes his view by saying that "99 to 100 may now be the top of the near term range."