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27 Feb 2013
Forex Flash: USD/JPY Q2 target at 97 – JPM
“The main driver of JPY weakness has been an 'inflation expectations bubble' spurred by unrealistically high hopes for Abenomics,” say Global FX team at JP Morgan, with USD/JPY targets now “raised to 94 for Q1, 97 for Q2 and Q3, and 96 for Q4.”
“We expect the JPY will continue to decline in trade-weighted terms, but in a choppy fashion,” they add, expanding: “In particular, investors are likely to be disappointed by the modest outcome we expect from the BoJ’s April 4 meeting (the first under the new Governor and Deputy Governors),” they conclude.
“We expect the JPY will continue to decline in trade-weighted terms, but in a choppy fashion,” they add, expanding: “In particular, investors are likely to be disappointed by the modest outcome we expect from the BoJ’s April 4 meeting (the first under the new Governor and Deputy Governors),” they conclude.