According to analysts at Danske Bank the USD/JPY will drop toward 107.00, before recovering to 110.00 on a twelve month horizon. They expect global sentiment to remain the key driver in the pair.
“We expect global sentiment to remain the key driver in the cross as risk-off, commodity sell-off and falling US rates run together and amplify each other to take USD/JPY lower.”
“Events to take JPY below 105 include (1) declining commodity prices, (2) continued deterioration of global demand and (3) negative news from the trade war, especially as optimism has been broad based in recent months.”
“We change our USD/JPY forecast from 106 to 107 on 1M, 3M and 6M, which reflects the stabilisation in global demand at a low level. However, Brexit and trade talks have also taken a more benign direction. On a 12M horizon, strengthening global demand continues to be our base case, which shifts USD/JPY to 110.00.”
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.