USD/JPY: shorts squeezed overnight on a variety of BoJ expectations - FXStreet
|Valeria Bednarik, chief analyst at FXStreet explained that Yen shorts got squeezed this Tuesday, as investors fear the Bank of Japan will end up providing less stimulus than the one initially estimated.
Key Quotes:
"Comments from Finance Minister Taro Aso, saying that the government is yet to decide on the size of the economic stimulus package and that he trusts the BOJ will act as needed, underpinned the JPY, also supported by rumors suggesting the upcoming fiscal stimulus will be less than half the expected 10trillion yen."
"The Bank of Japan will have its economic policy meeting this week, with most analyst expecting the Central Bank to cut rates further into negative territory from the current -0.10%. The USD/JPY trimmed partially its daily losses, recovering up to the 104.60 region after trading as low as 103.99 during the past Asian session."
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