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JP Morgan on the yen: USD/JPY going back to 110, and equilibrium below 100

Bloomberg report on the views of JPMorgan's Tohru Sasaki, Tokyo-based head of Japan markets research

  • Sees USD/JPY to 110 in 2016
  • Sees the equilibrium at "below 100" but says this doesn't see that as meaning it's the end of the recovery in corporate profits

  • "What investors like to hear is that the yen is weak and stocks are up -- but if everyone's constantly betting that way, at some point they're going to get burned"
  • "It's possible that equity prices keep going up forever, because everyone is working to maximize their returns. But in the forex market, it will never happen -- there's an up and down."

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His comments are part of the latest Bloomberg survey on USD/JPY. he was most bullish on the yen

  • 60 forecasts compiled
  • The consensus call is at 125

More here at Bloomberg

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


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

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