Danske Bank FX Strategy Research expects the broader trading range for USD/JPY of 108-115 to hold over the next 3-6 months on the ground that a dovishly priced Fed and short USD positioning look set to support the cross in the coming months.
"We target USD/JPY at 111 in 1M and 114 in 3M.
Longer term, we still expect the JPY to underperform vis-à-vis USD and EUR driven by real interest rates and portfolio outflows from Japan.
We target USD/JPY at 116 in 6-12M," Danske projects.
In line with this view, Danske maintains a long USD/JPY* position targeting a move to 114.50.
Source: Danske Bank ResearchOriginal Article
