In the opinion of economists rabbankthe risk of USD/JPY hitting 140.00 in the short term heavily dependent on US yields. Therefore, increases in US Treasury yields will be closely watched.
BOJ policy on yield control curve unlikely to change any time soon
“Assuming Bank of Japan policy remains unchanged in the near term, the outlook for USD/JPY is likely to depend on the outlook for US yields. If US yields rise, USD/JPY could hit 140.”
“Later in the year, the BOJ is likely to hope that signs of domestic wage inflation will allow it more flexibility to consider a policy change without being pushed into it by speculators. In this scenario, USD/JPY is likely to come down.”
Source: Fx Street
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