2 Dec 2014
USD/JPY: Flat profile expected - BTMU
FXStreet (Bali) - FX Strategists at Bank of Tokyo-Mitsubishi UFJ, note that USD/JPY is likely to stabilize from here.
Key Quotes
"Our forecast profile for USD/JPY is flat indicating that USD/JPY adjusted quickly to the surprise easing move at the end of October. The snap election on 14th December will give PM Abe a fresh four-year period to implement needed reform. However, lifting inflation toward the 2% goal in circumstances of global disinflationary pressures due to falling commodity prices will prove difficult. The risk to our profile is to the upside given the relative monetary policy outlook – but a risk of a shift in Fed rhetoric is also reflected in the flat profile."
Key Quotes
"Our forecast profile for USD/JPY is flat indicating that USD/JPY adjusted quickly to the surprise easing move at the end of October. The snap election on 14th December will give PM Abe a fresh four-year period to implement needed reform. However, lifting inflation toward the 2% goal in circumstances of global disinflationary pressures due to falling commodity prices will prove difficult. The risk to our profile is to the upside given the relative monetary policy outlook – but a risk of a shift in Fed rhetoric is also reflected in the flat profile."