Analysts at Nomura explained that thanks to lower expectations of BOJ rate hikes, USD/JPY’s reaction to operation tweaks, if any, should be more muted. Key Quotes: “In H1 this year, USD/JPY was more sensitive to JGB market volatility in a negative way, but this sensitivity has returned to being neutral since July’s BOJ meeting. USD/JPY’s high sensitivity to the JGB market in Q1 explains the major divergence between rate spreads and USD/JPY. However, as BOJ normalisation expectations have fallen, USD/JPY has followed rate spreads well. The Fed is still on track to hike in December and in 2019, and we judge downside risks for USD/JPY remain limited. Higher FX hedge costs will increase lifers’ demand for USD if USD/JPY falls from its current level. A Reuters article also said the Bank is not in a rush to change its operations, and the recent aggressive purchases of ETFs suggest the BOJ remains dovish, and it may not want to shake the market while volatility is higher globally.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Breaking News: US to introduce next wave of tariffs if talks between Trump & Xi fail FX Street 4 years Analysts at Nomura explained that thanks to lower expectations of BOJ rate hikes, USD/JPY's reaction to operation tweaks, if any, should be more muted. Key Quotes: "In H1 this year, USD/JPY was more sensitive to JGB market volatility in a negative way, but this sensitivity has returned to being neutral since July's BOJ meeting. USD/JPY's high sensitivity to the JGB market in Q1 explains the major divergence between rate spreads and USD/JPY. However, as BOJ normalisation expectations have fallen, USD/JPY has followed rate spreads well. The Fed is still on track to hike in December and in 2019, and… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
