USD/JPY faces an important resistance in the mobile average of 200 around 152.00 – BBH

The Bank of Japan (Boj) adopted a cautious posture and warns about a weaker Japanese (JPY), BBH FX analysts report.

The BOJ indicates little tolerance to a weaker currency

“The USD/JPY was briefly recovered above 150.00 before cutting profits at 149.20. As expected widely, the box Real is very low. “

“However, the BOJ warned that ‘there are high uncertainties around economic activity and prices in Japan, including the evolutionary situation with respect to trade …’. The comments reinforce the market assessment for a terminal rate of the BOJ from 1.00% to 1.25% over the next two years, with the next full increase of 25 basic points in September.”

“The limited margin for an additional adjustment of the expectations of the BOJ rates restricts the potential for the appreciation of the JPY. Meanwhile, the depreciation of the JPY is contained since the BOJ indicated little tolerance to a weaker currency. ‘With the behavior of the companies changing more towards the increase of salary and prices recent affect prices. ‘ The USD/JPY faces an important resistance in the 200 -day mobile average around 152.00. “

Source: Fx Street

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