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26 Feb 2015
Further BoJ easing expected this year, USD/JPY to extend to 125 – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, anticipates BoJ to ease further in this year, which could lead to a weaker Yen against the USD.
Key Quotes
“Measured on a 12 mth view the yen has dropped about 16% vs. the USD. However, since early December USD/JPY has been trading a choppy range with the yen around 1.6% stronger vs. the USD relative to its December low.”
“While Kuroda may be upbeat about Japan’s moderate recovery trend, we still see risk that the BoJ may announce further easing of some kind this year to underscore its commitment to its inflation target and consequently we expect that the yen will push higher vs. the USD towards 125.00 on a 12 mth view.”
Key Quotes
“Measured on a 12 mth view the yen has dropped about 16% vs. the USD. However, since early December USD/JPY has been trading a choppy range with the yen around 1.6% stronger vs. the USD relative to its December low.”
“While Kuroda may be upbeat about Japan’s moderate recovery trend, we still see risk that the BoJ may announce further easing of some kind this year to underscore its commitment to its inflation target and consequently we expect that the yen will push higher vs. the USD towards 125.00 on a 12 mth view.”