The Japanese yen plunged to the 131 level following the Bank of Japan’s decision to keep its monetary policy instruments unchanged. The ING Economists They expect the USD/JPY rally to stall at 132.50/133.00 and see the pair likely to trade at 120 by the end of the year..
A volatile downtrend
“USD/JPY remains one of the most volatile currencies in the G10 and more than meets volatility expectations. One-week volatility stands at 20%, compared to 19% valued at prices. We expect volatility to continue, especially in the March/April period, when Governor Kuroda relinquishes the reins of the Governing Council of the Bank of Japan”.
“We expect further dollar weakness across the board this year as expectations of Federal Reserve easing in the second quarter rise. This likely means that the current USD/JPY correction stops at the 132.50/133.00 zone, with higher risk up to 135.00.”
“We have a target for the end of the first quarter of this year at 128.00 Y our current year-end target of 125.00 should probably be closer to 120.00.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
