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FXStreet (Edinburgh) - Shusuke Yamada, CFA at BAML, suggested the pair could navigate between 125.00 and 130.00 early next year.
Key Quotes
“In light of (1) the acceleration of the US economy and rise in short-term yields, (2) the possible downward revision of the BoJ’s bullish growth/price outlook down the road, and (3) the BoJ’s asymmetrical stance on policy responses, we continue to see a gradually higher USD/JPY trajectory”.
“The range is likely to transition into USD/JPY125-130 into 1H16, before peaking, as we forecast USD/JPY to rise to 125 by year-end and beyond in 1H16”.