1 Jul 2015
USD/JPY: Expecting a test of high at 125-128 – DB
FXStreet (Barcelona) - Stronger US economic data in the July-September Quarter, and the expected Fed rate hike this year, signals towards a USD/JPY move higher around 125-128, according to Taisuke Tanaka, Strategist at Deutsche Bank.
Key Quotes
“Japan's economy is rebounding steadily. If the Jul-Sep quarter confirms stronger US economic indicators and the Fed looks increasingly likely to raise interest rates within 2015, we would expect the USD/JPY to test a high at 125- 128.”
“The Tankan Survey shows large manufacturers using a forecast dollar/yen rate of 115.62 for FY2015.”
“We think Japan's exporters are unlikely to rush toward hedge selling as long as the USD/JPY holds at around 120 or higher.”
Key Quotes
“Japan's economy is rebounding steadily. If the Jul-Sep quarter confirms stronger US economic indicators and the Fed looks increasingly likely to raise interest rates within 2015, we would expect the USD/JPY to test a high at 125- 128.”
“The Tankan Survey shows large manufacturers using a forecast dollar/yen rate of 115.62 for FY2015.”
“We think Japan's exporters are unlikely to rush toward hedge selling as long as the USD/JPY holds at around 120 or higher.”