JPMorgan – USDJPY at 110.00 in 2016

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JPMorgan forecast USD/JPY to fall towards 110.00 next year. They also claim that such yen strength won’t destroy Japan economy.

Tohru Sasaki, Tokyo-based head of Japan markets research sees the equilibrium USD/JPY rate under 100. He says:

“What investors like to hear is that the yen is weak and stocks are up — but if everyone’s constantly betting that way, at some point they’re going to get burned. It’s possible that equity prices keep going up forever, because everyone is working to maximize their returns. But in the forex market, it will never happen — there’s an up and down.”

JPMorgan’s forecast is the most USD/JPY bearish among analysts, as the average consensus see USDJPY rate at 125.00 in 2016.
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