10 Apr 2014
USD/JPY 107 6 month view - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that a factor to watch around the USD/JPY and Japan is the progression of the Japanese current account.
Key Quotes:
“In February this moved back into a surplus for the first time in 5 months as the increase in imports from front loading demand ahead of the sales tax declined”.
“While imports could remain soft for the next few months, the trend will still be heavily influenced by the need to buy in fossil fuels.”
“In the comings months, reviews of the health of the newest nuclear power stations will be published and more clues to their future will be known”.
“Assuming current account deficits become more normal in Japan, this opens the JPY to another potentially negative factor. We forecast USD/JPY107 on a 6 mth view”.
Key Quotes:
“In February this moved back into a surplus for the first time in 5 months as the increase in imports from front loading demand ahead of the sales tax declined”.
“While imports could remain soft for the next few months, the trend will still be heavily influenced by the need to buy in fossil fuels.”
“In the comings months, reviews of the health of the newest nuclear power stations will be published and more clues to their future will be known”.
“Assuming current account deficits become more normal in Japan, this opens the JPY to another potentially negative factor. We forecast USD/JPY107 on a 6 mth view”.