USD/JPY seen between 110-115 in 3-6 month – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, believes the pair could gravitate between 110 and 115 in the near to medium term.

Key Quotes

“Near term, we expect USD/JPY to continue to trade within a narrow range of 105-108, but expect it to gradually move higher supported by relative interest rates and positioning. We have thus lifted our 1M and 3M forecast to 107 in 1M (105 previously) and 108 in 3M (107)”.

“In the medium term, we expect USD/JPY to gradually recover supported by continued solid global growth outlook and Fed-BoJ divergence and we expect the cross to eventually return to the 110-115 range in 6-12M. We target the cross at 110 in 6M and 112 in 12M”.