USD/JPY: Limited upside potential for the Yen in the near term – Commerzbank
|Inflation rises in Japan. Economists at Commerzbank discuss BoJ's policy outlook and its implications for the Yen.
Prices in Japan are rising
“Prices in Japan are rising. As a result, some analysts expect another increase in the 10-year Japanese government bond yield target as early as this summer, effectively pushing up long-term interest rates in Japan. However, USD/JPY levels around 140 suggest that this is (still) a minority view.”
“As long as the BoJ continues to signal a wait-and-see approach to gain more certainty about the sustainability of inflation dynamics, high inflation will erode the Yen's purchasing power. As a result, we see limited upside potential for the Yen in the near term.”
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.