The BOJ’s new monetary regulation affected the Japanese Yen as Goldman Sachs improved the forecasts for USDJPY. The near-term forecast was improved up to 95.0. At the same time, the bank’s currency strategists expect the currency pair to hit 102.00 and 105.00 in 3 and 6 months correspondingly.
In the long run, the US Dollar is expected to strengthen even higher. Therefore, USDJPY will see a further rally, the analysts expect.
The recent measures taken by the Bank of Japan give Goldman Sachs an opportunity to reconsider their long-term forecasts. In late 2014, USDJPY is expected to hit 110.00. In 2015 and 2016 it will be around 115.00 and 125.00 correspondingly.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of USDJPY. The currency pair is retracing after another upswing.
A break above 99.85 will continue the rally. The closest levels of resistance are 101.21/25, 104.06/25. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 92.56 (as shown below).
