The analysts of Rabobank share a brief outlook for the USD/JPY pair.
The Bank of Japan could raise rates again at the end of the year
“The current strength of the dollar is based on the expectation that Fed rates will remain higher for longer. The USD has also likely been boosted by safe-haven demand stemming from fears of an escalation of the crisis “Weaker US data and a moderation of Middle East concerns would help curb the dollar's strength.”
“That said, our core view is that the USD will remain relatively firm. Alternatively, Stronger Japanese economic data and a boost to expectations that the Bank of Japan (BoJ) may raise rates again later this year would give the Yen some broad-based strength“. Earlier today, comments from BoJ pigeon Asahi Noguchi indicated that he was in no rush to raise rates again. That said, assuming real Japanese household incomes turn positive again later this year, We see the risk of another BoJ rate hike. However, this is unlikely for a few months. Meanwhile, there is a strong risk that the Bank of Japan will intervene in an attempt to protect USD/JPY. of the 155” zone.
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.
