USD/JPY expected to move higher near term – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, sees the greenback appreciating further vs. its Japanese counterpart in the short term horizon.

Key Quotes

“Albeit USD/JPY fell a tad on Yellen’s speech, we note that Bank of Japan’s Kuroda also took the opportunity in Wyoming to stress devotion to accommodative policy and emphasised that the BoJ is watching policy moves elsewhere (read: still focused on JPY moves) but that policy must be right for Japanese conditions”.

“In the absence of further North -Korean tensions, this makes long USD/JPY a more attractive way of positioning for near-term dollar strength than e.g. EUR/USD”.