With Abe winning the 2017 Japanese “snap” general elections there is little to no room for changing BoJ’s monetary policy stance, thus, inflationary pressures are likely to remain below the 2.0% YoY target, hence, markets are probably going to be driven, as they did in 2017, purely on external factors, i.e. risk sentiment.

Acknowledging increasing vulnerability amid geopolitical concerns, their effect on short and long-term Yield Spreads, and the firm global growth I believe that speculative rallies will move USD/JPY sideways between 108 and 118 with the price ending 2018 closer to the higher end of the range.

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