USD/JPY to test 142.00 in coming weeks – Credit Suisse

The USD/JPY pair has reached fresh multi-decade highs above 139.00. Economists at Credit Suisse expect USD/JPY to extend its race higher towards the 142.00 level.

USD/JPY to move towards 142 over the coming weeks

“One view that we are not inclined to change yet is our call for USD/JPY to test 142.00 in coming weeks. When we initially targeted this level, we were not expecting US yields to drop back as far as they have done in recent weeks. In that context, we are pleasantly surprised by how resilient USD/JPY has proved to be despite that retracement.” 

“With our core logic for a bullish USD/JPY view having been the expectation that the Bank of Japan would hang tight with its current stance, we see no reason to shift position after these events gave new reasons to hold that view.”