Analysts at Rabobank explained that for months the market has been largely ignoring the reassurances of the BoJ’s Kuroda that he remains fully committed to the BoJ’s huge QQE programme.
"Strong growth in Japan and a tight labour market has raised suspicions that the BoJ could start to back out of this policy in the foreseeable future."
"However, CPI inflation in Japan remains well below its target and low inflation expectations are deeply ingrained in Japan’s nation psyche."
"It is our view that the market speculation that the end of QQE is nigh is premature."
"On the assumption that risk appetite stabilises we expect USD/JPY to recover some ground and head higher in the months ahead."
"We retain a 3 mth target of USD/JPY112.00."
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 securities. 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 Forex 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.