USD/JPY to trend higher all year – Scotiabank

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, views that USD/JPY might remain reactive to yields, risk aversion and fundamentals, and continue to trend higher all year.

Key Quotes

“USDJPY has rallied up to fresh highs, above 122.00 before drifting lower; while EURJPY is flirting with fresh lows, flirting with the January 26 low of 130.15.”

“There was limited domestic data released with PM Abe reiterating that ending deflation and reviving the economy are his top priority.”

“USDJPY from here is likely to be driven by yields, risk aversion and fundamentals.”

“We expect USDJPY to trend higher all year, interrupted by brief periods of risk.”

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