Société Générale believes that once the BoJ has signalled its intention to put an end to the current extension of the monetary easing, the USD/JPY pair could find itself under serious downward pressure.
«As the market for Japanese rates will remain asleep due to the monetary policy of the BoJ, the pair is likely to remain more influenced by the next Dollar. But we believe that this will not be the case forever : Sooner or later, the next Yen will go out of its hibernation.
Keeping this in mind, USD/JPY risk to return to the area 100-105 once the BoJ will decide to put an end to the actual consolidation. » says SocGen.