Market news
18.05.2022, 16:50

USD/JPY: We continue to see the potential for further upside – Rabobank

Analysts at Rabobank continue to favour the US dollar over the Japanese yen as a safe haven in this current crisis and they see scope for a move in USD/JPY towards 132.00 on a one to three-month view, assuming the Federal Reserv hikes interest rates at an aggressive pace in the coming months and that the Bank of Japan retains an extremely dovish policy position. 

Key Quotes: 

“Despite the pressure on the trade balance, Japan’s current account recorded a second straight surplus in March, proving that investment income into the country can still outweigh the impact of surging energy and commodity costs. The better than expected current account release helped restore confidence in the JPY’s safe haven status and coincided with a dip lower in the value of USD/JPY towards the end of last week. We continue to favour the USD over the JPY as a safe haven in this current crisis and see scope for a move towards USD/JPY132.00 on a 1 to 3 month view.  This view assumes that the Fed hikes interest rates at an aggressive pace in the coming months and that the BoJ retains an extremely dovish policy position.”

“While better Japanese current account data and a bout of short-covering has pushed USD/JPY away from its recent highs, we continue to see the potential for further upside over the summer as the Fed continues to hike rates.  Assuming an improvement in Japanese economic data, speculation of a potential alteration to the BoJ’s YCC policy has the potential to rein back USD/JPY into the autumn.”
 

© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location