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14 Feb 2013
Forex Flash: USD/JPY could target 93.00-95.00 by H1 2013 – Rabobank
The cross is now bouncing off lows in the proximities of 93.10 to the current region around 93.30 in a context dominated by the increasing risk aversion.
According to Jane Foley, Chief Currency Strategist at Rabobank, the recent voices against the Japanese government regarding the strong depreciation of the yen could fin some support domestically and thus pointing to a more stable exchange rate in the medium term.
“If, as we anticipate, the Fed is pulling out of QE by year end but the BoJ is still keeping the printing presses on overdrive, higher treasury yields should act as a disincentive for USD/JPY to push higher. By the second half of this year we expect that USD/JPY will have stabilised in the 93-95 area”, Foley concluded.
According to Jane Foley, Chief Currency Strategist at Rabobank, the recent voices against the Japanese government regarding the strong depreciation of the yen could fin some support domestically and thus pointing to a more stable exchange rate in the medium term.
“If, as we anticipate, the Fed is pulling out of QE by year end but the BoJ is still keeping the printing presses on overdrive, higher treasury yields should act as a disincentive for USD/JPY to push higher. By the second half of this year we expect that USD/JPY will have stabilised in the 93-95 area”, Foley concluded.