Yen to underperform, headed to 120? - Scotiabank

Analysts at Scotiabank explained that the JPY will underperform broadly in the coming year. 

Key Quotes:

"Domestic growth trends remain weak and the BoJ remains far from achieving its 2% inflation goal. 

This means policy accommodation remaining in place for an extended period as other central banks prepare to exit extra-ordinary accommodation or nudge policy tighter. 

Relatively weaker growth and accommodative monetary policy settings will weigh on the JPY. 

We expect the USD to trade up to the 120 area through late-2019 but longer-term charts suggest a risk of more rapid USD appreciation in the medium term if the USD pushes through the 115 area on a sustained basis in the next couple of quarters."