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Forex Flash: We should be thinking triple figures for USD/JPY - RBS

By FXstreet.com,  January 15, 2013, 07:48:00 PM EDT

FXstreet.com (Barcelona) - The current QE policy of the BoJ is on a path to expand its balance sheet at a faster rate than the Fed over the coming year as a percentage of GDP after successive expansions in the BoJ APP since September, says Greg Gibbs, strategist at RBS, adding that "further policy steps are expected next week."

While Mr. Gibbs does not rule out that we might be in for a potential period of consolidation ahead, he thinks that "the Abe government is not about to let the confidence boost they have engendered over recent months to reverse by allowing the momentum to wane..." As such, the projections for further Yen weakness to stay around 90 as the year progresses looks like a probable scenario, he says. "The likelihood is that Abe and the BoJ in their push for nominal growth will continue to take bold steps and we should be thinking triple figures for USD/JPY" Mr. Gibbs adds.




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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