Comments on the USD/Yen on the interplay between the Federal Reserve and Bank of Japan.
From Mizuho Securities via Bloomberg
- If the Fed raises rates four times
- And the BOJ eases
- May push USD/JPY to 132
Says that the BOJ may take further easing action in April after central bank sees result of spring wage negotiations and if trend of inflation remains weak
- USD/JPY could fall below 120.00 in 2H 2016 if emerging markets and commodities become unstable on Fed rate increases
Something for the bulls and the bears there.
If you've read my comments in ForexLive's top 10 trading ideas for the coming year you'll see I am very wary of further yen weakness unless positioning drives $/Yen up through 125.50 on stop loss buying.
If you haven't read the top 10 trading ideas for 2016, its free and available free here:
Speaking of top 10. Justin Bieber has 3 songs in the Australian top 10 this week. I'm sure they are all very good, but sheesh, really Australia?