Back
17 Apr 2015
USD/JPY range bound in the near-term – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, sees the pair in a consolidate pattern in the near term.
Key Quotes
“We continue to see divergence between BoJ and Fed policy acting as a driver of USD/JPY upside”.
“We expect the Fed to hike in September, which should ensure the cross stays supported in the coming months”.
“In the short term, USD/JPY is likely to remain range bound but should rally further on FOMC repricing and then range trade again towards year-end as it becomes clear the BoJ is done for now”.
“In our baseline scenario the BoJ will not ease further. However, recent weak data has indeed increased probabilities of more easing”.
“Additional BoJ easing could be a catalyst of more yen weakness, which combined with a less bearish yen positioning has increased risks that our 6 and 12 months targets being reached earlier than we project”.
Key Quotes
“We continue to see divergence between BoJ and Fed policy acting as a driver of USD/JPY upside”.
“We expect the Fed to hike in September, which should ensure the cross stays supported in the coming months”.
“In the short term, USD/JPY is likely to remain range bound but should rally further on FOMC repricing and then range trade again towards year-end as it becomes clear the BoJ is done for now”.
“In our baseline scenario the BoJ will not ease further. However, recent weak data has indeed increased probabilities of more easing”.
“Additional BoJ easing could be a catalyst of more yen weakness, which combined with a less bearish yen positioning has increased risks that our 6 and 12 months targets being reached earlier than we project”.