Forex Flash: USD/JPY potential decline to 85.00 in Q1 2013 – Scotiabank

FXstreet.com (Barcelona) - The increasing risk aversion prevailing in the markets since yesterday afternoon has collaborated in the recent correction lower in the cross, as investors are showing its preference for the safe haven JPY.

"We remain biased for nearterm USDJPY upside (JPY weakness), based on technicals and buying pressure; however we hold a more modest target of 85 for Q113 as we expect buying pressure to abate temporarily later in the first quarter as much of the negative impact of the new government, BoJ policy and domestic fundamentals become priced in", explains C.Sutton, Chief Currency Strategist at Scotiabank.