A couple of calls for much higher USD/JPY .
USD/JPY rallied, hard, in the US on Tuesday after the smashing inflation numbers.
I've been posting on this all morning, and the response from Japan (trying to talk the yen up).
Links from this post for the story so far today:
Analyst comments, in brief:
Credit Suisse:
- We stay with our long-held bullish view
- long-term core objective at 147.62/153.01(the 38.2% retracement of the entire fall from 1982 and price high of 1998)
- any abrupt setback is ideally held at 139.43/39 to keep the risk ... higher
RaboBank:
- our view that USD strength will sustain for some months yet
- It is also possible that the BoJ will maintain loose policy settings into next year. This suggests scope for USD/JPY to head higher in the coming months
- A move to 150 can not be ruled out
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There is not much that the Bank of Japan can do about the dropping yen with such a stark policy differential with the tightening Federal Reserve.
Tha bazookas are loaded with blanks though.