- Analytics
- News and Tools
- Market News
- USD/JPY: Softer US yields may be necessary to bring the pair down – Rabobank
USD/JPY: Softer US yields may be necessary to bring the pair down – Rabobank
Analysts at Rabobank expect the USD/JPY pair to remain around current levels on a one to three month view. They consider the pair could pullback toward 130 around year end.
Key Quotes:
“It can be inferred that if and when wages and prices do rise the BoJ will be able to change the tone of monetary policy. Meanwhile the BoJ is maintaining extremely accommodative policy suggesting that USD/JPY remains exposed to the interest rate differentials between treasuries and JGBs.”
“Although we expect USD/JPY to remain elevated around current levels on a 1 to 3 month view we see scope for USD/JPY to edge back to 130 around year end.”
“Japan’s history of weak wage inflation and the low acceptance of price rises in the country mean that Kuroda’s hopes of hitting the 2% CPI inflation target in a sustainable way are by no way guaranteed. If it is assumed that BoJ policies remain accommodative USD/JPY may be at risk of further gains. Softer yields in the US may be necessary to bring the currency pair down to lower levels.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
