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Economists at Westpac are hoping that the current move higher extends above 109.50 post the BoJ announcement. MUFG Bank also expect the BoJ’s measures to support the USD/JPY pair.

Key quotes

“We hope and expect to see a meaningful injection of liquidity designed to target cash-strapped small businesses. Key will be the incentives to encourage banks to take up the liquidity.”

“We see an inevitable deterioration in US-China trade relations and disappointment about the speed of economic improvement as countries reopening as factors that will support the yen on a medium-term basis.”

“Sub 107.50/108 is not the level to be establishing shorts near-term. We remain frustrated sellers of strength and are hoping that the current move higher extends above 109.50 post the BoJ announcement.”