USD/JPY: Uptick in the BoJ growth profile to be mildly supportive - Westpac
|A very modest uptick in the BoJ growth profile ("Japan's economy is expanding moderately" vs "Japan's economy has been turning toward a moderate expansion“) and the official confirmation that Kuroda will not see the 2% inflation target during his tenor should be seen as mildly USD/JPY supportive, according to Robert Rennie, Research Analyst at Westpac.
Key Quotes
“We have tended to view dips in USD/JPY sub 110 as a buy on the basis that Japanese demand for foreign assets has been improving and we are forecasting the Fed to raise rates and taper before the end of the year.”
“To be sure, the risks of a steel trade war are there and N Korea/ ‘Russiagate’ risks remain a constant threat. However, we tend to see USD/JPY as well supported below 111.”
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.