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1 May 2013
Forex Flash: AUD/JPY - fasten your seat-belt, it's going to be volatile - Westpac
FXstreet.com (Barcelona) - AUD/JPY is likely to be volatile in coming months, says Sean Callow, currency strategist at Westpac.
Sean explains: "Our base case is for a pullback to around 98-99 over the next month as the BoJ doesn’t announce any new easing measures and investment outflows from Japan remain patchy."
Mr. Callow adds: "By mid-2013 however there is likely to be renewed upward pressure on AUD/JPY, with scope for 107/108, as BoJ easing in full swing encourages Japanese life insurers and others to invest abroad. To reinforce the potential volatility, we look for AUD/JPY to fall back to 94 by end-2013."
Sean explains: "Our base case is for a pullback to around 98-99 over the next month as the BoJ doesn’t announce any new easing measures and investment outflows from Japan remain patchy."
Mr. Callow adds: "By mid-2013 however there is likely to be renewed upward pressure on AUD/JPY, with scope for 107/108, as BoJ easing in full swing encourages Japanese life insurers and others to invest abroad. To reinforce the potential volatility, we look for AUD/JPY to fall back to 94 by end-2013."