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Forex Flash: USD/JPY potential ascent to 90.00 towards year-end – Scotiabank

By FXstreet.com,  January 04, 2013, 01:01:00 PM EDT

FXstreet.com (Barcelona) - After a short knee jerk post-NFP figures, the USD/JPY has resumed its relentless upside sparked in mid November, climbing from the 79.20 region to the actual levels not seen since July 2010

In the opinion of C.Sutton, Chief Currency Strategist at Scotiabank, the weakness in the JPY has been accentuated lately "on the back of relative central bank policy as the release of the FOMC minutes highlight a Fed who is likely to end asset purchases well before the BoJ". The analyst adds that further selling pressure comes from the increasing concerns regarding Japan's sovereign debt, PM S.Abe's strong commitment to achieve the 2% inflation target and the likeliness that the BoJ could be losing some of its independence.

"Accordingly, even as technicals suggest USDJPY is well overbought (RSI is at 86), fundamentally the repricing of USDJPY continues. We hold a Q113 target of 85 and a Q413 target of 90", concludes the expert.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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