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22 Dec 2015
USD/JPY: base case bullish - Scotiabank
FXStreet (Guatemala) - Analysts at Scotiabank explained that USD/JPY is entering the holiday period in neutral.
Key Quotes:
"Which is appropriate because the market is basically mid‐range between this year’s peaks (above 125) and troughs (116). It’s been a year of moving sideways for USD/JPY."
"Last week’s volatlity around the BoJ policy meeting announcement (and confusion over policy signals) has likely bolstered the market’s lack of conviction about the broader trend in this market. Our base case remains bullish, however, on the expectation that higher US rates will lift USD/JPY through 2016."
Key Quotes:
"Which is appropriate because the market is basically mid‐range between this year’s peaks (above 125) and troughs (116). It’s been a year of moving sideways for USD/JPY."
"Last week’s volatlity around the BoJ policy meeting announcement (and confusion over policy signals) has likely bolstered the market’s lack of conviction about the broader trend in this market. Our base case remains bullish, however, on the expectation that higher US rates will lift USD/JPY through 2016."