Mizuho with forecasts for the yen ahead (via Bloomberg) :

117 for EUR/JPY by the end of the year

  • 103 for USD/JPY

Mizuho say both currencies to appreciate against the dollar

  • yen more than the euro
  • because of the relative absence of political noise in Japan
  • central bank policy driving down the currency is stronger for Europe, making the euro more prone to weakness


  • USD to trade lower as yields continue to fall
  • Fed has more scope for rate cuts than the ECB
  • ECB has greater potential to ease than the Bank of Japan
  • more political issues to weigh on euro than on yen