JPY weakness to continue in 1H18 - BAML
|2017 has been a year of USD/JPY stability as the pair has traded mostly in the range of 110-115 and the high-low gap was merely 11.28 points, points out the research team at Bank of America Merrill Lynch.
Key Quotes
“In the goldilocks environment, most cross-yen pairs have exhibited strength with only NZD, CHF, and USD underperforming JPY within G10. In 1H18, we believe the yen’s fundamental weakness will be maintained, but will manifest in USD/JPY rather than in cross-yen. In 2H18, the BoJ policy normalization we expect is likely to lead to a correction in USD/JPY and higher volatility.”
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