Rabobank's USD/JPY Forecast Hurdles Higher as US Dollar Strength Continues

Rabobank's three-month USD/JPY forecast put the US Dollar to Yen exchange rate at 154.00, below Friday's close near 156.88 after a week of solid US Dollar gains.

The forecast was set before Friday's Bank of Japan decision, when the bank warned that an expected hike might fail to satisfy Yen buyers.

'While profit-taking on fresh long JPY positions cannot be ruled out following the BoJ meeting tomorrow, we are optimistic that the economic reforms in Japan can help sustain USD/JPY around current levels in the coming months,' said Rabobank.

The subsequent move has made that target more demanding.