Deutsche Bank on where USD/JPY is headed
. As seen in GPIF’s December settlement, Japanese investors would support the USD/JPY at around ¥110 by dip-buying but are unlikely to be a driving force above ¥115. In the near term, if the rate fails to go beyond ¥115 if/when the Fed raises rates this month, the currency can be corrected down in disappointment. However, we stand by our view that the USD/ JPY will rise in line with US interest rates as long as the outlook for these risk scenarios remains relatively low.
