Flash: USD/JPY to keep rising on textbook funda combo - UBS

FXstreet.com (Barcelona) - The textbook combination of fiscal tightening and looser monetary policy in Japan, is a receipt to keep the yen weakening, notes Mansoor Mohi-uddin, Head of FX Strategy at UBS Macro Research.

Key Quotes

"For now USDJPY is likely to remain supported by modest expectations of the Fed tapering its quantitative easing."

"However, over the medium term, the risk of another major increase in Japan's quantitative easing is also set to push the currency pair higher over the next few months."