JPY: Kuroda versus the market
We remain bullish on USDJPY, forecasting 105 and 120 in 3 and 12 months, respectively, but we recognize that occasional pullbacks will challenge our view. Right now seems to be one of those periods. Our technical analysts look for a consolidation to 96.96/75 before USDJPY resumes its uptrend. Developments in both Japan and the US seem to be combining to support this view for the next two to three weeks. Nonetheless, we recommend keeping the faith and recommend buying the dip.