USD/JPY: Trading Around Fair Value; To Move Gradually Towards 107-112 Range In H2 – NAB

0

What is the USD/JPY outlook in the near-term?

Here is their view, courtesy of eFXdata:

NAB Research discusses USD/JPY outlook and adopts a neutral bias in the near-term.

We continue to see current fair value in USD/JPY around ¥108 with price action on the pair expected to be largely contained in a ¥105 to ¥110 range over coming months. Later in H2-21 USD/JPY should gradually move towards a higher trading of ¥107 – ¥112 with an expected renewed rise in 10y UST yields a key factor for our end of the year forecast of ¥110,” NAB notes.

“After a period of consolidation our rate strategists expect 10y UST yields to end the year at 2.25% amid our expectations of additional improvement in the global macro-economic backdrop,” NAB adds.

For lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Get the 5 most predictable currency pairs

About Author

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.