Deutsche Bank: USD/JPY to rise in autumn
Strategists at Deutsche Bank are long-term bullish on USD/JPY, but expect the pair to stay inside of the 101-102 yen range until the end of summer, even despite the better-than-expected USD economic data releases. The pair is likely to rise into the 105-110 range only in September-October. Thin market conditions won’t let this happen in August.
In early autumn expectations for an earlier US rate hike are expected to rise on the back of steadily strong statistics. What’s more, the Japanese Governmental pension fund will intensify its investment activity by this time.
Chart. Daily USD/JPY