Scope For Further JPY Strength Towards 110 After BoJ’s Move – BTMU

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The Bank of Japan triggered a “mini taper tantrum” with its tests. In addition, the news about China’s intention to slow buys of US Treasuries also played its part in pushing USD/JPY lower. What’s next?

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research discusses USD/JPY outlook and notes that the JPY is the biggest mover in the G10 FX space today as the market continues to respond to the BoJ decision to cut longer-term JGB purchases.

“After Governor Kuroda made efforts to reverse the speculation of a policy adjustment, which was starting to succeed, the cut in purchases are rekindling that speculation again.

The BoJ has been tapering for some time – this carrying on this year is one factor behind our view that the yen is likely to strengthen further, dropping to levels below 110.00 versus the dollar,” BTMU argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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