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6 Feb 2013
Forex Flash: USD/JPY buy on dips – Danske Bank
The weakness surrounding the Japanese yen is intensifying on Wednesday, following M.Shirakawa’s comments on Tuesday that he will step down on March 19th, before the scheduled date on April 8th, triggering a bull run in USD/JPY to levels above 94.00 overnight.
In the opinion of M.Helt, Senior Analyst at Danske Bank, the announcement “t is not really breaking news, but rather an important message that Bank of Japan, and not least the new government, is serious about the new 2% inflation target. Thus, the fundamental case for a weaker JPY remains intact as the new Bank of Japan governor is expected to be more committed to implementing Bank of Japan’s inflation target and we still recommend buying USD/JPY on dips”.
In the opinion of M.Helt, Senior Analyst at Danske Bank, the announcement “t is not really breaking news, but rather an important message that Bank of Japan, and not least the new government, is serious about the new 2% inflation target. Thus, the fundamental case for a weaker JPY remains intact as the new Bank of Japan governor is expected to be more committed to implementing Bank of Japan’s inflation target and we still recommend buying USD/JPY on dips”.