USD/JPY to reach 122 by year-end as recent rally is set to reverse – UBS
The Japanese Yen has been under pressure in recent days, with USD/JPY breaking a six-month high of 140. But in the view of economists at UBS, Yen weakness should reverse as Dollar strength is unlikely to last.
BoJ looks set to normalize policy with positive economic data
“While we acknowledge the risk of further near-term upside for the Dollar, we believe the recent movement in USD/JPY is set to reverse, and we expect the pair to reach 122 by year-end.”
“The minutes of the Federal Reserve's last policy meeting showed that the need for more rate hikes has become less certain.”
“The Bank of Japan looks set to normalize policy with positive economic data. The strength in the latest set of economic data should keep the Bank of Japan on track to adjust its yield-curve control regime sometime between July and October, in our view. We expect the central bank to raise the 10-year Japan government bond (JGB) yield target from 0.5% currently to at least 0.75%.”
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
