The economists of Rabobank They expect the upside potential of the Japanese Yen (JPY) against the US Dollar (USD) to be moderate this year.
Opportunity for BoJ to raise rates could be limited
The summary of the Bank of Japan's (BoJ) January monetary policy meeting indicates that at least one member of the Committee sees the current moment as a “golden opportunity” for policy action.
Market surveys at the end of last year pointed to April as the most favorable date for the first interest rate rise of the cycle, although some participants see the risk that it will occur as early as the next monetary policy meeting on March 19. .
The opportunity for the Bank of Japan to raise rates could be limited, given expectations of rate cuts by the Fed and other G10 central banks this year.
Our forecast of a move to 135.00 in the 12-month USD/JPY is based on the assumption of a rate hike by the Bank of Japan this year. As the risks of a spring rate hike appear to have strengthened further, We have lowered our three-month USD/JPY forecast to 145.00 from a previous forecast of 146.00.
Source: Fx Street
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