USD/JPY to target 104 in 1-3M – Danske Bank

USD/JPY remains underpinned by USD recovery and higher US interest rates, according to Chief Analyst, Jakob Christensen at Danske Bank.

Key Quotes

“We still expect the combination of portfolio flows into Japan ahead of the fiscal year end on 31 March, stretched short JPY positioning and fragile risk appetite to weigh on the cross in coming months. We target 104 in 1-3M. We are currently sidelined in USD/JPY, but tactically we would consider selling on rallies to around 109.”