FXStreet (Guatemala) – Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that USD/JPY risk is centered on the outlook for relative policy as market participants consider the prospect of a normalizing Fed in contrast to an accommodative BoJ.
Key Quotes:
“We maintain a bias to weakness and look to USD/JPY gains into year end with a Q415 forecast of 125 and a Q416 forecast of 131. USD/JPY faces ongoing vulnerability to turbulence in the broader market tone, however we note that these periods tend to be short-lived and highlight that options prices continue to favor protection against upside risk in USD/JPY.”
(Market News Provided by FXstreet)