FXstreet.com (Córdoba) - The Diet's approval of two new dovish members to the Bank of Japan's board increases the risk that the central bank will decide at its next meeting on July 12 to raise its Asset Purchase Programme further, according to UBS analyst team.
"The BoJ is now targeting consumer prices to rise by 1.0% y/y. But this week's CPI data for June is likely to show inflation only around zero in Japan", they say. "Thus the central bank is set to increase its purchases of government bonds further to stimulate the economy".
"As a result we see dips in USDJPY back towards the bottom of its current 78-82 range as opportunities to buy the currency pair", they conclude.
"The BoJ is now targeting consumer prices to rise by 1.0% y/y. But this week's CPI data for June is likely to show inflation only around zero in Japan", they say. "Thus the central bank is set to increase its purchases of government bonds further to stimulate the economy".
"As a result we see dips in USDJPY back towards the bottom of its current 78-82 range as opportunities to buy the currency pair", they conclude.
