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    USD/JPY risks further downside – Danske Bank Pablo Piovano

    Allan von Mehren, Chief Analyst at Danske Bank, sees the Japanese currency appreciating further in the next months.Key Quotes“We still expect BoJ to cut its policy rate by 20bp to -0.3% in July and to announce additional qualitative measures including a scale up of ETF purchases and a maturity extension of its government purchases”.“In our view, additional BoJ easing in combination with a repricing of the Fed (we expect the Fed to hike in September) should help to provide support to the yen in the coming months from a relative rates perspective”.“The yen surged and USD/JPY fell to the lowest level recorded since September 2014 following the announcement and in the very short term we see risks skewed to the downside for USD/JPY ahead of the upcoming EU referendum in the UK on 23 June”.

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