USD/JPY points to 125.00 by year-end – BAML

By FXStreet FXStreet (Edinburgh) – BofA Merrill Lynch Global Research expects the yen to depreciate to the 125.00 level vs. the greenback by year-end.

Key Quotes

“In light of (1) the resilience of the US economy and expected rise in short-term yields, (2) the possible downward revision of the BoJ’s bullish growth/price outlook down the road, and (3) the BoJ’s asymmetrical stance on policy responses, we continue to see a gradually higher USD/JPY trajectory”.

“The range is likely to transition into USD/JPY125-130 into 1H16, before peaking, as we forecast USD/JPY to rise to 125 by the year-end and beyond in 1H16”.
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Source:: FX Street