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2 Apr 2015
Barclays: USD/JPY to remain range-bound around 120 in the year ahead – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Barclays views that the JPY will likely remain range-bound against the USD around 120 in the year ahead due to countervailing factors.
Key Quotes
"On one hand, expected USD strength and portfolio rebalancing outflows are likely to exert upward pressures on USDJPY.”
“On the other hand, already extended valuations, Japan’s improving current account, and unintended contractionary consequences of a weaker currency should limit further JPY depreciation."
"The currency pair remains prone to a temporary sharp correction lower in reaction to deterioration in risk sentiment. Moreover, a bout of surprise monetary policy easing by various central banks around the world has already resulted in lower cross-yen rates, resulting in an appreciation of trade-weighted JPY since the beginning of the year, despite the move higher in USDJPY."
This content has been provided under specific arrangement with eFXnews.
Key Quotes
"On one hand, expected USD strength and portfolio rebalancing outflows are likely to exert upward pressures on USDJPY.”
“On the other hand, already extended valuations, Japan’s improving current account, and unintended contractionary consequences of a weaker currency should limit further JPY depreciation."
"The currency pair remains prone to a temporary sharp correction lower in reaction to deterioration in risk sentiment. Moreover, a bout of surprise monetary policy easing by various central banks around the world has already resulted in lower cross-yen rates, resulting in an appreciation of trade-weighted JPY since the beginning of the year, despite the move higher in USDJPY."
This content has been provided under specific arrangement with eFXnews.