Lont term forecast USD/PJY

March 8 (Bloomberg) -- The dollar has room for “substantial” gains against the yen this year, according to Royal Bank of Scotland Group Plc.

“A Japanese government effort that appears aimed at averting yen strength will encourage retail-capital outflow from Japan,” Greg Gibbs, a currency strategist in Sydney, wrote today in an investor note. “A robust recovery in the U.S. will encourage thoughts of rate hikes in the U.S. later this year, and encourage global investors to use other currencies, such as the yen, to fund carry trades. We continue to see substantial upside yet for the dollar-yen over this year.”