USD/JPY: Poised to test the 150 level – Credit Suisse
Japan’s FX intervention has slowed yen weakness. But economists at Credit Suisse expect USD/JPY to test 150.00 if the Bank of Japan (BoJ) stands pat at its October meeting.
Waiting for BoJ to “do the right thing”
“Japan’s latest strategy of using unilateral FX intervention to defend JPY, despite the BoJ’s monetary policy driving its weakness, marks the first time since the 90s that it has tried this approach. The odds of it delivering lasting success seem low.”
“Governor Kuroda continues to insist on sustainable wage gains before changing tack. But movements in Japanese swap spreads and curve shapes point to a market getting tired of waiting. Kuroda needs to get lucky and somehow see a sustained decline in US yields for pressure on USD/JPY to surge past 150 to ease.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
