Credit Agricole Sees 111.50 Yen as Tankan Beat Pales Before U.S.
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The yen will test the weakest level since January 2008 as expectations the Federal Reserve will tighten monetary policy override an improvement in Japanese corporate sentiment, according to Credit Agricole SA.
Japan’s currency may drop to 111.50 per dollar when the Federal Reserve sets monetary policy on Oct. 29, said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo. The level is the 50 percent retracement from the yen’s August 1998 low of 147.66 to its post World War II high of 75.35 in October 2011, according to Fibonacci technical analysis.