USD/JPY traded back above 150.00 after the BoJ abandoned its Negative Interest Rate Policy (NIRP). TD Securities economists analyze the pair's outlook.
BoJ abandoned NIRP and YCC simultaneously
The BoJ simultaneously abandoned Negative Interest Rate Policy (NIRP) and Yield Curve Control (YCC) and revamped its monetary policy framework around short-term interest rates. The central bank maintained its quantitative easing program and signaled that it will react quickly to any rise in long-term interest rates.. Our confidence in an October hike has diminished following Governor Ueda's dovish comments and recent economic data.
USD/JPY is now hostage to Wednesday's FOMC decision and any big hawkish surprise from Powell could push USD/JPY past its 2022 high at 151.90which could prompt some strong verbal interventions from the Japanese Ministry of Finance.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
