EUR/JPY posted an impressive rally in the second half of May. What is the forecast for the pair in the coming weeks?
Here is their view, courtesy of eFXdata:
Credit Suisse abandons its bearish EUR/JPY bias and no longer targets the cross at 112 over the coming weeks.
“As for our risk aversion trades in G10, short EURJPY is unlikely to perform while equity markets stay resilient but more importantly if the longer-term risk premium required for EUR declines,” CS notes.
“But we are still reluctant to shift our USDJPY 105 medium-term target given the lack of yield support the greenback now has relative to the JPY and the cheapness of hedging USD exposure for Japanese investors. This means we now target EURJPY 117.60, up for 112.00 previously,” CS adds.
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