USD/JPY: Plenty of scope for Yen bulls to be disappointed this year – Rabobank

USD/JPY traded at the highest level since mid-December on Friday. Economists at Rabobank analyze the pair’s outlook.

The BoJ is unlikely to consider a rate hike before April

We adhere to the view that the BoJ is unlikely to consider a rate hike before April, allowing for consideration of the spring wage deals and the latest fiscal stimulus package.

The overriding theme of BoJ policy is likely to be caution. This suggests plenty of scope for JPY bulls to be disappointed this year.

Our three-month USD/JPY forecast remains at 143.00.