NAB Research discusses USD/JPY outlook and maintains its base-case for the pair to remain contained in a 108-112 range.
"In our 2020 GFXS outlook published back in December last year, we argued that USD/JPY was expected to be largely contained in a ¥108-¥112 range over the course of this year. We retain this view and keep our ¥109 forecast for Q1 and Q2, reflecting our bias for the pair to spend a bit more time on the lower half of its expected range," NAB notes.
"This view is also extended to H2-20 where our forecasts have been slightly tweaked from ¥108 and ¥110 in Q3 and Q4 respectively to ¥109 for both quarters. A gentle JPY strengthening theme remains in place in 2021," NAB adds.