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Forex pairs in this Article » EUR/USD, USD/JPY (Bali) - There will be an expansion of BoJ QE policies in 2014, according to Societe Generale, leading to a surge in USD/JPY towards 115 over the next 18 months.

Key Quotes

"More QQE from the BoJ. Abenomics has truly worked its magic so far, with JGB yields near record lows, the yen falling sharply and the Nikkei soaring in 2013 – all positive developments for the economy."

"This equilibrium looks very unstable in the long term, unless nominal growth accelerates strongly and takes care of the debt problem."

"Yet we expect the same policy strategy to be pursued even more aggressively in 2014. The consumption tax hike in April will present significant risk to the economy indeed, leading the BoJ to scale up QQE."
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