USD/JPY: JP Morgan upgrades its forecast for the end of 2017, but still expects a decline in relation to current prices

The JP Morgan bank recently raised its year-end USD/JPY forecast, although it still forecasts a decline from current prices.

The bank now anticipates the USD/JPY pair to hit 105 at the end of 2017, versus 99 in its previous forecast.

The bank explains that improved US-Japan relations and the prospect of aggressive rate increases by the Fed motivate this opinion, which is a bit more optimistic regarding the pair according to the bank.

JP Morgan, however, continues to believe that ultimately the market will likely focus on uncertainties about protectionism, which will weigh on the dollar, as was observed earlier this year.