Forex Flash: USD/JPY likely to drop to 79.00 in 3m view – Rabobank
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USD/JPY
FXstreet.com (Barcelona) - The Japanese yen continues to lose ground against its American counterpart on Thursday, trading in the middle of today's range around 82.50, as the late increase in risk appetite was also supportive of a weaker yen.
Strategist Jane Foley at Rabobank wonders whether the markets have overestimated the BoJ ability to weaken the JPY via a higher inflation, apart from the last comments by the LDP party.
"Longer term we expect that a solid improvement in risk appetite will promote yen weakness, however this will have to be associated with a better outlook for world growth which implies a recovery in the Eurozone and an end to fiscal cliff concerns in the US. On a 3m view we see risk of dips in USDJPY back towards 79.00& In the near-term we would look to buys dips in USDJPY", she finishes.
Strategist Jane Foley at Rabobank wonders whether the markets have overestimated the BoJ ability to weaken the JPY via a higher inflation, apart from the last comments by the LDP party.
"Longer term we expect that a solid improvement in risk appetite will promote yen weakness, however this will have to be associated with a better outlook for world growth which implies a recovery in the Eurozone and an end to fiscal cliff concerns in the US. On a 3m view we see risk of dips in USDJPY back towards 79.00& In the near-term we would look to buys dips in USDJPY", she finishes.
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