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5 May 2015
USD/JPY targets 123.00 year-end – BAML
FXStreet (Edinburgh) - According to Analyst Shusuke Yamada at BAML, the pair could be headed towards 123.00 by end of 2015.
Key Quotes
“A stable Abe-Kuroda reflation tag should promote policies to lower real interest rates and improve investor sentiment, which will incentivize domestic investors to sell JPY”.
“Despite JPY’s undervaluation and some improvement in the current account balance expected in 2015, we continue to expect the BoJ’s easy policy to prevent the yen from rising”.
“We forecast USD/JPY at 123 at end-2015”.
“We have noted the possibility of the BoJ's buying operations failing in the future, but potential failure could at least prompt debate over the current policy framework”.
“Under such a risk scenario, it is conceivable for the yen to strengthen initially despite falling interest rates and leaves policy outlook with a great degree of uncertainty”.
Key Quotes
“A stable Abe-Kuroda reflation tag should promote policies to lower real interest rates and improve investor sentiment, which will incentivize domestic investors to sell JPY”.
“Despite JPY’s undervaluation and some improvement in the current account balance expected in 2015, we continue to expect the BoJ’s easy policy to prevent the yen from rising”.
“We forecast USD/JPY at 123 at end-2015”.
“We have noted the possibility of the BoJ's buying operations failing in the future, but potential failure could at least prompt debate over the current policy framework”.
“Under such a risk scenario, it is conceivable for the yen to strengthen initially despite falling interest rates and leaves policy outlook with a great degree of uncertainty”.