Forex Flash: USD/JPY year-end target at 95.00 – Scotiabank

The Japanese yen is resuming its appreciation against the greenback on Thursday, driving the cross to sub 93.00 levels once again, as investors continue increase their positions in safer assets.

In the opinion of Camilla Sutton, Chief Currency Strategist at Scotiabank, the next big event for the Japanese economy would be the appointment of M.Shirakawa’s successor to command the BoJ, although the upcoming meeting between PM S.Abe and US President B.Obama would be interesting.

In addition, the expert noted the initial concerns amongst Japanese officials regarding the likeliness of higher energy import prices due to the recent depreciation of the yen. “. Finance Minister Aso suggested that a sharp rise in import prices would be a big program; while Economy Minister, Amari, suggested that they would take steps to ease the impact of import price rise. We hold a year-end USDJPY target of 95”, Sutton concluded.