Roy Teo, senior foreign exchange strategist at ABN Amro, thinks the yen will continue to weaken and set an upside target of ¥107, Financial Times reports.
Looking at Japanese markets, Teo argued that the Bank of Japan will “cut the policy rate from -0.1 per cent to -0.2 per cent next year,” putting more pressure on the yen.
“An unwinding of overcrowded speculative long yen positions could push the yen weaker towards [the]next resistance zone around ¥107.50-107.90 in the coming weeks,” Teo added.
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