Stronger yen next year

While dollar/yen has mostly been stuck in a large consolidation range for much of 2006, Buskas remains optimistic about the prospects for yen appreciation in the months ahead.

She sees potential for dollar/yen to eventually move toward the 105.00 region, a mid expectations for stronger Japanese growth. Other factors supportive to the yen are central bank diversification away from the U.S. dollar.

Westpac’s Callow also predicts yen appreciation. He predicts strength toward 108.00 by March 2007 and 105.00 by June 2007.