USD/JPY in the long term, back on 116,00 – Danske Bank

FXStreet – in the medium term the currency pair is likely to rise on the brand of 116,00, commented Morten Helt, Senior Analyst at the Danish Danske Bank.

Important Quotes:

The currency pair USD/JPY staged a dynamic rally. Causes of rising equity and interest rate markets. We still believe that the Federal Reserve will raise its key interest rate at the June meeting. Because of the interest, but as a foregone conclusion and the USD/JPY is overbought on indicators based on strong, we expect in the short term, a decline in Momentum.

In 1 to 3 months, we see the USD/JPY to 114 (down from 110, and 112). The price driver will remain in the interest – in particular, the yield on 10-year US government bonds and the risk inclination of the investors. Due to the gap between the commodity and stock markets, we see the risks in the coming one to three months on the bottom. In the long term, the current price level of the currency pair is justified.

In 6 to 12 months, we see the Cross on 116,00. Price and supportive here, the difference between American and Japanese interest rates.

** FXStreet News Editorial, FXStreet**

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