Dollar/yen break-out expected

Analysts polled by FX Week are largely split into two camps.

Some expect the yen to strengthen to breach its lower limit of 103 per dollar, believing the worst of the Japanese economic data currently affecting the currency to be priced in.

Others, however, believe that against the recent weak economic background, pessimism is taking a toll on the currency, and the break-out could be to the upside, breaching 112. This view is bolstered by expectations of continued interest rate hikes in the US

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