Analysts at UOB Group explained their outlook on Central Banks and are bullish USD/JPY.
"BoJ Governor Haruhiko Kuroda reiterated in strong terms the BoJ’s resolve to continue its asset purchase programme, stressing that “powerful monetary easing” has to continue warning of an entrenched deflationary mindset that will not easily go away and that “there is still a long way to go before price stability target of 2% is reached”.
Effectively, the BoJ is now the only major developed central bank that continues to implement strong quantitative easing.
The US Federal Reserve is well into its tightening agenda, while both the Bank of England (BoE) and Bank of Canada (BoC) have raised rates, and the European Central Bank (ECB) has most recently halved its monthly asset purchase amount. We stay positive on USD/JPY and expect gradual move higher above 115."
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