FXstreet.com (Barcelona) - Bank of New Zealand has now revised up NZD/JPY forecasts for the next 18 months.

According to BNZ FX strategist Mike Jones, "we now see NZD/JPY at 70.50 by year-end, with the cross expected to remain around this level through to December 2013, and expected to gradually trend lower through 2014." In practice, "this would imply NZD/JPY moving from the reliable 58.00-69.00 range of the past three years to a higher 62.00-72.00 range" Mr. Jones adds.

"We see a new-look BoJ pursuing inflation much more aggressively, including via direct measures to weaken the JPY; a more dovish BoJ would add to JPY headwinds from a deteriorating balance of payments position and higher US bond yields" Mike notes.