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20 May 2015
USD/JPY year-end target at 125 – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura, explain that USD/JPY might break higher soon, and suggest maintaining a long bias into the pair.
Key Quotes
“As the timing of Fed liftoff approaches, monetary policy divergence will put upside pressure on USD/JPY gradually, in our view.”
“In addition, JPY short positions in the speculative community have been materially reduced, creating smaller downside risk for USD/JPY. As the timing of Fed liftoff approaches, more investors see JPY as an attractive currency to short against the USD, which can also support USD/JPY later this year.”
“We expect USD/JPY to break the highest so far this year (122.03) relatively soon, reaching 125 by end-2015. We recommend to keep a long trading bias for USD/JPY.”
Key Quotes
“As the timing of Fed liftoff approaches, monetary policy divergence will put upside pressure on USD/JPY gradually, in our view.”
“In addition, JPY short positions in the speculative community have been materially reduced, creating smaller downside risk for USD/JPY. As the timing of Fed liftoff approaches, more investors see JPY as an attractive currency to short against the USD, which can also support USD/JPY later this year.”
“We expect USD/JPY to break the highest so far this year (122.03) relatively soon, reaching 125 by end-2015. We recommend to keep a long trading bias for USD/JPY.”