USD/JPY rangebound between 108-115 for the time being – Danske Bank
|In opinion of FX Strategists at UOB Group, spot should keep the sideline theme between 108 and 115 in the next 1-3 months.
Key Quotes
“We still expect the broader trading range for USD/JPY of 108-115 to hold over the next 3-6 months, and while both US and Japanese domestic politics and not least North Korea remain key downside risk factors for USD/JPY, a dovishly priced Fed and short USD positioning look set to support the cross in the coming months”.
“We target USD/JPY at 111 in 1M (prev. 114) and 114 in 3M. Longer term, we still expect the JPY to underperform vis-à-vis USD and EUR driven by real interest rates and portfolio outflows from Japan. We target USD/JPY at 116 in 6-12M”.
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