As reported by Bloomberg, the idea that USD/JPY could hit 100.00 in 2019 is gaining traction with fund managers, with Deutsche Bank AG issuing the 100.00 call by year-end 2019.
Deutsche Bank: “While the flash crash move has largely been faded, we think the drivers of yen strength go far beyond this,” write strategists including George Saravelos in a research note.
Russell Investments: “If there’s a severe slowdown in the U.S. economy and the market sniffs out the Fed’s interest rate peak, 100 would be very attainable,” said Van Luu, head of currency and fixed-income research at the firm.
Investec Asset Management: 100 is “a huge level,” according to portfolio manager Russell Silberston, as it marks the highs seen in the 2016 risk-off scare.
Janus Henderson Investors: “In a global growth slowdown, Fed cutting rates, volatility increasing type of world and with a currency as fundamentally cheap as Japanese yen, 100 doesn’t seem like a stretch.”
Credit Agricole SA: “Our long-term forecast for the yen is indeed that dollar-yen should revisit 100 by 2020,” said head of G-10 currency strategy Valentin Marinov.