The economists of Credit Suisse analyze the outlook for USD/JPY after the latest Bank of Japan decision.
Strong surprises to the downside in US data could limit gains
Although our hold policy proposal last week did not pan out, we felt justified by the “spirit” of both the modest change in monetary policy and Monday’s quick intervention to limit performance.
Our expectations for the third quarter are 135-152, and we have viewed the 145 level as a natural magnet. If that level is broken, we see no reason not to see a move towards 150., unless there are strong surprises to the downside in the US data in the meantime. At that point, we suspect that the Bank of Japan will be tempted to intervene again in the FX market, as it did in September/October 2022, at which point we would look to take profits on long positions.
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.
