Forex Flash: USD/JPY looking bullish on dips; 3-mo outlook at 85 – UBS
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USD/JPY
FXstreet.com (San Francisco) - From UBS: "We expect USDJPY will trade in a 80-85 range now and dips are likely to be shallow - even though the US faces its fiscal cliff at the end of the year."
UBS continues: "Investors have been surprised by the sudden rise in USDJPY and are likely to buy the pair on retracements. Investors should thus expect USDJPY to start trending higher now in anticipation of a new BoJ governor next year."
UBS adds: "The forthcoming BoJ meeting in the week ahead on November 19-20 may not result in any new easing. But if the central bank does follow through with more aggressive easing after April under a new governor, USDJPY will trade well above our 85 three month target."
USDJPY last trades at 80.20.
UBS continues: "Investors have been surprised by the sudden rise in USDJPY and are likely to buy the pair on retracements. Investors should thus expect USDJPY to start trending higher now in anticipation of a new BoJ governor next year."
UBS adds: "The forthcoming BoJ meeting in the week ahead on November 19-20 may not result in any new easing. But if the central bank does follow through with more aggressive easing after April under a new governor, USDJPY will trade well above our 85 three month target."
USDJPY last trades at 80.20.
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