Forex Flash: USD/JPY at 110.00, EUR/USD at 1.2000 by year-end – UBS

FXstreet.com (Barcelona) - The Japanese yen was already looking vulnerable after the USD/JPY broke above 100 overnight. Now, these changing flow dynamics are likely to help keep the upswing alive. According to Research Analyst Gareth Berry at UBS, “We raise our 1-month and 3-month USD/JPY forecasts to 102.00 and 105.00 respectively (previously both stood at 95.00).”

In particular, the US dollar has chalked up significant gains against the yen over the past 24 hours, but the greenback's advance has been broad-based too. “This reinforces our belief in a stronger dollar over the course of 2013, and we stick to our end-2013 forecasts of the EUR/USD at 1.2000 and USD/JPY at 110.” Berry adds.