Themes: reality check We have argued that $/¥ is set to rally back to 120 by end-2017.
The Republican party’s clean sweep in the US election bolstered our view, and the pair quickly rose to 118s.
At the same time, short-term risk/reward has not turned decisively positive yet since we first pointed out before the December FOMC.
While Trump presidency can surprise to either side, positioning suggests the market is vulnerable to a pullback near-term.
Forecasts: JPY weakness to continue in 2017 USD/JPY is in a medium-term bull market, in our view. We expect USD/JPY to rise to 120 and EUR/JPY to 126 by end-2017.
*BofA's FX targets last updated on eFXplus Forecasts on Jan 09.
Copyright © 2017 BofAML, eFXnews™Original Article
