USD/JPY to race higher towards the 137 mark – Westpac

USD/JPY is moving sideways near 135 at the start of the new week. Economists at Westpac expect the pair to reach the 137 level in the near-term. 

JPY’s depreciation path is set to continue

“The latest post 1998 spot highs are not backed by the 10 year Treasury – JGB spread. But we can’t justify calling a top of the cycle near term.”

“We continue to look for a run at 137.”