Economists at Rabobank share their USD/JPY and EUR/JPY forecasts.

Fibonacci retracement at EUR/JPY 151.30 is key support

Our forecast of USD/JPY 138 on a three-month view assumes that speculation of further potential tweaks by the BoJ remains, though we expect that progress will be slow on this front. 

We see the EUR/JPY pair at 1.49 in three months. EUR/JPY broke below trendline support on the back of the ECB’s dovish hike in late July. The Fibonacci retracement at EUR/JPY 151.30 is key support.