After rising 600 pips in May from 97.00 in May 1st, the USD/JPY is now trading above the 103.00 level and according to the Rabobank analyst team, the perspective is positive in the long term.
"At present the increase in risk appetite in the financial system combined with the aggressive nature of BoJ policy is sufficient to suggest that USD/JPY will remain on an upward path for some months," points the Rabobank team. "We expect that the Fed will be paring back its asset purchases in Q1 next year."
"This action should support USD/JPY further during the 6 to 12 mth horizon," Rabobank states. "However, the more successful Abe’s policies prove to be in improving the business environment in Japan, the more traction will be offered to the JPY and the pace of USD/JPY gains will be tempered."
"We have revised up our 12 mth USD/JPY forecasts moderately to 105.00 and maintain our long standing forecast that on a 3-5 year view USD/JPY will be trading in the 115 region." – FXstreet.com (San Francisco)