USD/JPY to reach 122 by year-end as recent rally is set to reverse – UBS
|The Japanese Yen has been under pressure in recent days, with USD/JPY breaking a six-month high of 140. But in the view of economists at UBS, Yen weakness should reverse as Dollar strength is unlikely to last.
BoJ looks set to normalize policy with positive economic data
“While we acknowledge the risk of further near-term upside for the Dollar, we believe the recent movement in USD/JPY is set to reverse, and we expect the pair to reach 122 by year-end.”
“The minutes of the Federal Reserve's last policy meeting showed that the need for more rate hikes has become less certain.”
“The Bank of Japan looks set to normalize policy with positive economic data. The strength in the latest set of economic data should keep the Bank of Japan on track to adjust its yield-curve control regime sometime between July and October, in our view. We expect the central bank to raise the 10-year Japan government bond (JGB) yield target from 0.5% currently to at least 0.75%.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.