3 Feb 2015
JPY to weaken beyond 120 vs. USD – BAML
FXStreet (Barcelona) - Analysts at Bank of America-Merrill Lynch, forecast USD/JPY to move towards 123 levels by 2015-end and 127 by H1 2016.
Key Quotes
“A stable Abe-Kuroda reflation tag should promote policies to lower real interest rates and improve investor sentiment, which will incentivize domestic investors to sell JPY.”
“Despite JPY’s undervaluation and some improvement in the current account balance expected in 2015, we continue to expect the BoJ’s easy policy to weaken the yen gradually.”
“We forecast USD/JPY at 123 at end-2015 and 127 by 1H16.”
Key Quotes
“A stable Abe-Kuroda reflation tag should promote policies to lower real interest rates and improve investor sentiment, which will incentivize domestic investors to sell JPY.”
“Despite JPY’s undervaluation and some improvement in the current account balance expected in 2015, we continue to expect the BoJ’s easy policy to weaken the yen gradually.”
“We forecast USD/JPY at 123 at end-2015 and 127 by 1H16.”