Deutsche Bank: USD/JPY targets 120 yen
FXBAZOOKA.com - According to strategists at Deutsche Bank, the ascending USD/JPY trend will extend in 2015-2016, driven by sustainable US economic recovery. Fed funds rate are expected to rise gradually. The final target for USD/JPY lies at 120 yen.
Analysts point to the slack in the euro zone’s economy and to the growing policy divergence in Europe and in the US. USD strength pressures the EUR, while a weak EUR will continuously support USD.
JPY is expected to extend the decline as Japanese investors are buying foreign currency on dips. The demand is far from being satisfied, so JPY will stay under pressure. The governmental pension fund will support the trend by increasing foreign investment.