BNP Paribas: The growth of the yen is a temporary phenomenon

The pair EUR/JPY remains under pressure, but forex strategists at BNP Paribas believe the weakness is temporary, and offers attractive opportunities for opening long positions.
Analysts suggest that the growth of the yen reflects the disappointment of speculators, but do not see grounds for achieving new annual highs.
Fed undermined the confidence of the bulls and a key theme this year was the weakening of the dollar amid the silent expectation of increases in rates in the US. By BNP Paribas for example, do not believe that this year we will witness a tightening of monetary policy.
Meanwhile, the Japan Bank recently does not justify the hopes of the bears on the yen. We must not forget, however, that the situation in Japan is far from ideal and despite the showed restrain, regulators probably will be forced to adopt additional stimulus.
By BNP Paribas believe that sales of ¥ look attractive against both the dollar the euro. Experts retained its forecast for the exchange rate of EUR/JPY of Y131 at the end of the year and retain their long positions in the pair with target Y127.