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USD/JPY: Will remain on the defensive in the coming weeks – Rabobank

USD/JPY has moved from around 140 to 160 so far this year. We see USD/JPY holding around the 160 level on a 1-month perspective, with the USD/JPY falling back to 152 by year-end, say FX analysts at Rabobank.

USD/JPY to remain close to 160 in the coming weeks

“Overall, USD/JPY has moved from around 140 to 160 so far this year. Having peaked last week near 161.95, the pair has eased somewhat, although this move is largely related to the weakness of the US Dollar (USD) rather than a broad rise in the value of the Japanese Yen (JPY).”

“Overall, we see USD/JPY holding around the 160 level on a 1-month perspective, with USD/JPY retreating to 152 by year-end, on the assumption that real wages by then will also show signs of improvement.”

“The US Dollar (USD) could remain on the defensive in the coming weeks, allowing USD/JPY to hold near 160. Later in the year, we expect the JPY to regain some ground based on the assumption that a recovery in Japanese real wages will allow for a more hawkish BoJ.”

Source: Fx Street

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