USD/JPY: Credit Agricole's target for the end of the 1st Quarter 2018

Crédit Agricole reveals its opinion on the USD/JPY:

"The pair remains trapped between the rise in US rates and the decline of the equity markets. The exchange rate is therefore drawn in two opposite directions at the same time.

The US rate hike pushes the USD/JPY down, which could prompt Japanese investors to cut their upside positions on foreign debt. This could ultimately prompt Japanese investors to repatriate funds, which would have a bullish effect on the JPY.

In our view, the rise in US rates should cause the USD/JPY to rise towards 109 (our target by the end of Q1)", states Crédit Agricole.