Target dollar yen to fall to 116.30. Energy prices stabilizing and an overstretched USD favour a short in USD/JPY. The pair has overshot the move in the 10-year Treasury and JGBs spreads. Even if crude prices hang around here -- USD/JPY moving lower would be considered 'fair.' The biggest risks to this view is energy prices extending the rally in the short-term and firm dollar demand from Japanese importers. - CIBC FX Strategy
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