NAB Research discusses USD/JPY outlook and and maintains a slightly bearish bias over the medium-term.
"Japans’ economic recovery remains stuck in the slow lane. Deflationary pressures add to our expectations for a lower USD/JPY. A post mortem on the Q3 Tankan survey released early in October has left us comfortable with our expectations of a slow economic recovery in Japan and lower USD/JPY over the coming year," NAB notes.
"USD/JPY now trades around the ¥105 mark suggesting exporter profits look set to remain under pressure. On its own, the collapse in profits doesn't bode well for USD/JPY. Our medium-term view on USD/JPY sees the pair slowly but surely heading towards a lower trading range of ¥100 to ¥105 in 2021,"NAB adds.