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22 Apr 2013
Forex Flash: USD/JPY likely headed for 110.00 as G20 offers no deterrent – UBS
FXstreet.com (Barcelona) - The USD/JPY is testing 100 this morning in Asia after the G20 meetings resulted in little criticism of Tokyo’s policies. According to the UBS Research Team, “We think the currency pair is likely to trade above 100 in the near term as Japanese investors start to shift more funds abroad and expect the yen to weaken to 110 by year end.”
In the week ahead, the Bank of Japan meets and publishes its semi-annual economic outlook report. The central bank is set to forecast inflation rising to 2% by the spring of 2015. In doing so the BoJ will signal that it is fully committed now to meeting its inflation target within the next two years. “That should keep the USD/JPY and the Nikkei supported.” they add.
In the week ahead, the Bank of Japan meets and publishes its semi-annual economic outlook report. The central bank is set to forecast inflation rising to 2% by the spring of 2015. In doing so the BoJ will signal that it is fully committed now to meeting its inflation target within the next two years. “That should keep the USD/JPY and the Nikkei supported.” they add.