Analysts at Danske Bank, have revised their USD/JPY forecast lower to 109 in 1M and 112 in twelve months.
Key Quotes:
“During the recent sell-off in equity markets, JPY appreciated on a broad basis. If negative sentiment returns, JPY could see renewed support. Another risk to keep in mind is the potential for oil prices to overshoot if, for example, sentiment around Iran sanctions deteriorates when temporary waivers expire in April. That in turn would be JPY negative.”
“2019 does not look to be particularly USD positive following the recent more dovish tone from the Fed. We are however vigilant to recent disinflationary red flags in Japan.”
“We have revised our USD/JPY forecast lower to 109 in 1M, 110 in 3-6M and 112 in 12M.”
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