Former vice finance minister Eisuke Sakakibara says USD/JPY won't hit 125.00
The second wave of US dollar weakness is beginning to weigh on the US dollar today as longer-term traders and real money exit USD positions.
Former Japanese vice finance minister Eisuke Sakakibara is known as Mr Yen for managing the currency in his tenure and he now infrequently comments on its value as a professor at a Japanese university.
Eamonn had the headlines from his comments to Bloomberg earlier but the full story is up now.
"The period of cheap yen is beginning to be over and I think gradually the yen-dollar rate will move toward the range of 115 to 120," Sakakibara, 74 said in an interview in Tokyo. It is unlikely that the Japanese currency will decline toward 125 for "some time to come," he added.
He thinks the BOJ may be finished adding to its QE program. Earlier this week, the statement indicated little appetite to ease further.
"The BOJ will likely start seeking an exit when the Fed raises rates," Sakakibara said. "When we enter that phase, the yen isn't going to weaken."
On the orderboard, USD/JPY is trading at 119.48 with bids at 119.05/00 then more at 118.95 and the Sept 8 low of 118.86. If that zone breaks, there is strong demand at 118.50. Offers are at 119.89 and the big fig.
