USD/JPY seen at 115.00 in 6-month – Danske Bank

Pablo Piovano FXStreet

Morten Helt, Senior Analyst at Danske Bank, sees spot gaining upside traction to the 115.00 region within the next 6 months.

Key Quotes

“The upcoming general election in Japan on 22 October should not have a significant impact on USD/JPY if Shinzo Abe maintains his majority in the Diet following the election, as this is widely expected and priced in the FX market. However, we still see USD/JPY moving higher in coming months supported by strong global PMIs and a potential Fed rate hike in December. We target the cross at 113 in 1M (previously 111) and 114 in 3M”.

“Fundamentally, we still see a case for a higher USD/JPY over the medium-term horizon, driven by Fed-BoJ divergence, higher global yields (eventually) supported by global growth recovery and portfolio outflow out of Japan. We target USD/JPY at 115 in 6M and 116 in 12M”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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