Deutsche Bank: get ready for a USD/JPY rally
Strategists at Deutsche Bank forecast the USD/JPY pair to rise to 105-108 yen in Sep-Oct and (possibly) to surpass 110 by the year end. The bank expects the US economy to grow by more than 3% in Q3, strengthening the outlook for the Fed to raise interest rates.
From a longer term prospective, the US growth economic cycle is expected to continue until 2015-16. The USD/JPY could overshoot 120 yen in the end, analysts say.
Deutsche Bank expects the BOJ to leave policy unchanged on September 3-4. However, the overall BOJ outlook remains dovish, what is also supportive for USD/JPY in a long term.
Chart. Monthly USD/JPY