The Japanese Yen (JPY) is the best-performing currency after Bank of Japan board member Hajime Takata sent a clear signal in favor of ending the negative interest rate policy. Scotiabank economists analyze the outlook for USD/JPY.
BoJ's spring start to monetary tightening will bolster prospects for a Yen rally in Q2
The Yen recovers after the comments of the governor of the BoJ, Takata. He said the central bank's price target is “finally in sight,” suggesting the BoJ could be closer to a rate hike.
The USD/JPY pair is still far from technical support at 149.55, which could trigger a decline to the 148.00 area, but the prospect of the Bank of Japan starting a mild round of monetary tightening in the spring would reinforce the prospects for a rebound of the Yen in the second quarter, in line with seasonal patterns.
Source: Fx Street
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