USD/JPY forecast: Analysts predict drop to 143.00 – say that spot is overvalued

<p>A note via MUFG on their outlook for USD/JPY. Analysts are targeting 143.00, arguing:</p><ul><li>they expect a weaker US dollar</li><li>and see long JPY as the best way to capture this</li></ul><p>They do note that USD/JPY has shown resilience with a wide differential in yield helping to keep yen weak</p><ul><li>but their short term valuation model suggests spot USD/JPY is "well over-valued"</li><li>valuation model implies fair-value is 143.00</li><li>see more reasons to short than long, that the timing for a big drop lower could be approaching</li></ul><p>***</p><p>USD/JPY update:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.