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8 Jan 2015
USD/JPY to see 127 levels by 1H 16 – BAML
FXStreet (Barcelona) - The Research Team at Bank of America-Merrill Lynch, expect Japan’s balance of payment to remain mildly bearish for JPY, further forecasting USD/JPY to trade at 127 levels by 1H 2016.
Key Quotes
“A stable Abe-Kuroda reflation tag should promote policies to lower real interest rates and a better investor sentiment, which will further incentivize domestic investors to sell JPY. Together with a structural trade deficit and resilient outward FDI, Japan’s balance of payment is likely to remain mildly bearish for JPY. We forecast USD/JPY at 123 at end-2015 and 127 by 1H16.”
Key Quotes
“A stable Abe-Kuroda reflation tag should promote policies to lower real interest rates and a better investor sentiment, which will further incentivize domestic investors to sell JPY. Together with a structural trade deficit and resilient outward FDI, Japan’s balance of payment is likely to remain mildly bearish for JPY. We forecast USD/JPY at 123 at end-2015 and 127 by 1H16.”