FXStreet (Bali) – USD/JPY went for a final sprint to hit the 125.00 round number, an initial bullish target mentioned by several banking institutions in recent weeks.
Robert McAdie, Global Markets Head of Research and Strategy at BNP Paribas, wrote the following note back in May:
“We have a bullish outlook on USD/JPY, targeting 125 levels for the pair over a 6 month view. We expect rising US front-end rates and Japanese investor outflows to support this pair in advance of a Q3 rate hike in the US.”
Research Analysts at Nomura wrote in May 20th, “as the timing of Fed liftoff approaches, monetary policy divergence will put upside pressure on USD/JPY gradually. We expect USD/JPY to break the highest so far this year (122.03) relatively soon, reaching 125 by end-2015.”
Deutsche Bank wrote: “We believe the USD/JPY will eventually reach ¥125 at year-end. We recommend building a USD/JPY long position by buying on weakness, taking partial profit at benchmarks such as ¥120 or the previous high (¥122.03 on 10 March, Bloomberg) and using the remainder to aim for a further rise.”
(Market News Provided by FXstreet)