Analysts: comments on USD/JPY
BNP Paribas: US Federal Reserve could complicate Japan’s plans for a weaker yen. Expectations for an eventual withdrawal of Fed stimulus have pushed USD higher against JPY. But if there is no sign of a reduction in stimulus by March, investors could dump the dollar until it becomes clear when the Fed will take action.
Danske Bank: We do not expect the Bank of Japan to change its policy at this stage and consequently, we still expect USD/JPY to remain range bound in the coming months, before eventually rising on a 6- to 12-month horizon driven by divergent monetary policy as the Fed starts to taper and the Bank of Japan possibly scales up on its bond purchases at some point around summer next year. Hence, we still target USD/JPY at 110 in 12-month time.