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

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.