USD/JPY: BoJ to react only once 145 is near – Credit Suisse
|Economists at Credit Suisse analyze JPY outlook ahead of the Bank of Japan (BoJ) meeting next week.
Highly unlikely the BoJ would think about signaling a policy change
Disappointing Japanese wage data are reducing risks of a hawkish turn in BoJ policy at the upcoming 15-16 Jun, with negative implications for JPY.
We suspect the BoJ will be content to see this unfold for now rather than try to signal a tighter policy stance.
Only if USD/JPY drives higher towards our near-term 145 target would we expect a reaction. But even then, it is first likely to be verbal or actual FX intervention rather than through signalling a monetary policy shift.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.