"Announcements of QQE2 by the BoJ and reallocation by the GPIF on Oct 31 strongly confirmed the acceleration and sustainability of USD/JPY’s uptrend. The expected victory of the Prime Minister Abe-led coalition in the Lower House election on Dec 14 will further reinforce the rise of USD/JPY and Nikkei under Abe-nomics."
"The US economy is a main driver of USD/JPY higher and is expected to keep growing at +3%. We see USD/JPY reaching 125 by end-2014 and 130 by end-2015. While the recent rapid rally of USD/JPY will have to correct at some point, it will be firmly supported by Japanese investors buying-on-dips and importers who have not secured sufficient amounts of USD yet."
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