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I think with regard to the Yen we have seen quite a substantial increase in USD/JPY from March to April. What we are seeing now is the reversal in rebounding of USD/JPY. At that stage a lot of market participants thought the USD/JPY could go a lot higher and actually the market has expected USD/JPY growth, but a lot of people were anticipating the Yen depreciation. I think the BOJ will continue to pursue the monetary easing, which signals that the interest rates are going to stay low for a long time. I think the US Dollar will come down as a result. It has been already reflected in USD/JPY with the Yen strengthening.
For the end of this quarter we forecast USD/JPY to be at 77. In the near term we can see the further downside pressure on USD/JPY. The pair might breach the support level 80, after which short squeeze is expected, then the pair could continue depreciating. Therefore, we are looking at 77 at the end of the second quarter. By the year end USD/JPY will be heading towards 75.
For the end of this quarter we forecast USD/JPY to be at 77. In the near term we can see the further downside pressure on USD/JPY. The pair might breach the support level 80, after which short squeeze is expected, then the pair could continue depreciating. Therefore, we are looking at 77 at the end of the second quarter. By the year end USD/JPY will be heading towards 75.