USD/JPY set to race higher towards 2017 highs at 118.62 – Credit Suisse
|USD/JPY is now approaching the 114.00 level. Economists at Credit Suisse expect the pair to surge higher and reach the 2017 peak of 118.62.
Reasons to stay long
“We see scope for JPY weakness to run further into and after the 31 Oct election. We are raising our potential Q4 USD/JPY top to the 2017 high at 118.62, where we would expect the move to fade out on a longer-term basis.”
“Barring a major collapse in global risk assets, we also raise our floor for the pair to 111.60 from 108.00 previously.”
“Although we see high odds of hopes for genuine change being disappointed in the final analysis, we prefer not to stand in the way of markets trying to price in a robust monetary divergence theme at this time.”
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