The USD/JPY approaches 150.00 after the minimization of the BOJ on the climb of October rates – Rabobank

During a brief period this morning, market commentators speculated that the BOJ could announce the next cycle rates as soon as in October. That conclusion was derived from what seemed to be a slightly more moderate result than expected at today’s Boj’s policy meeting. This speculation was quickly denied by the comments of the governor of the Boj, Ueda, in his press conference, suggesting that he does not see the BOJ as ‘lagging’ in the tightening of politics. Nor does he see that ‘the fog suddenly rises’ about commercial perspectives, reports Rabobank’s currency analyst Jane Foley.

USD/JPY approaches 150.00 while the BOJ points to caution on rates rises

“The ‘updated report on economic activity and the prices’ of the BOJ highlights the uncertainties faced by those responsible for the policy. Although the estimation of the Boj for the inflation of the CPI has been reviewed upwards, the statement also warns that’ the economic growth of Japan will probably be moderated, since commercial policies and others in each jurisdiction lead to a deceleration in foreign economies already national corporations and other factors’.

“The USD/JPY has not remained above the level of 150.00 since April. The announcement of Trump’s reciprocal rates at the beginning of that month led to a release of the negative feeling towards the USD, which may have come to an end. While the USD remains the worst y Americans who characterized market activity in the first five months of this year has changed.

“In the light of support for short coverage for the USD this week, we have slightly elevated our 1 month forecast for the USD/JPY to 148.00. Assuming the market maintaining the opinion that the BOJ will probably upload the rates around the change of year, we hope that the USD/JPY recedes to 145.00 in a perspective of 3 months.”