USD/JPY: BNP banks aims for 108 by year's end but doesn't exclude short-term risk of dip below 100

"We expect the BoJ to disappoint the markets.

Our economists do not expect any action regarding deposit rates and no significant changes in the QE. However, we also don't expect that a monetary status quo will cause sharp appreciation of the JPY, especially 12 hours away from the Fed meeting.

This week, the most important factor for the USD/JPY is likely to be the FED's decision and we continue to target 108 by the end of the year.

But if the FED does not raise its interest rates, the combination of a monetary status quo from the two central banks could push the USD/JPY back below the threshold of 100." says the BNP bank.