A note via MUFG on their outlook for USD/JPY. Analysts are targeting 143.00, arguing:
- they expect a weaker US dollar
- and see long JPY as the best way to capture this
They do note that USD/JPY has shown resilience with a wide differential in yield helping to keep yen weak
- but their short term valuation model suggests spot USD/JPY is "well over-valued"
- valuation model implies fair-value is 143.00
- see more reasons to short than long, that the timing for a big drop lower could be approaching
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USD/JPY update:
![usdyen chart update mufg strategy 11 December 2023](https://images.forexlive.com/images/usdyen%20chart%20update%20mufg%20strategy%2011%20December%202023_id_69d8b794-d47c-43c2-9102-e6a6f4a9e2c2_size900.jpg)