An early update for USD/JPY, which caught another substantial bid after the blockbuster US jobs report on Froday:
I had an outlook from Standard Chartered to post, analysts there were looking for 149 … and here we are.
- had expected a range of 140 – 149 for the coming month
For the 6 – 12 month horizon ahead Stan Chart forecast a fall for USD/JPY to below 135. Analysts cite rate differentials as the driver. I can’t really see these as driving USD/JPY lower, US rates will remain well, well above Japanese rates over that time horizon (yeah, I know, famous last words but I have a high degree of confidence in saying this … it seems obvious).
USD/JPY update, backing off from 149 now: