The USD/JPY pair continues to trade in a relatively tight range above 130.00 as market participants try to figure out how Bank of Japan (BoJ) monetary policy will be set up when the new governor takes office. Rabobank economists see the pair at 128 three months ahead.
Some change in BOJ policy is likely in the coming months.
“In the coming weeks, Prime Minister Kishida will appoint the next BOJ governor. This may bring its own set of surprises to the extent that there is a chance that speculators may have to accept that the new governor’s outlook may not be drastically different. from that of the previous one. In our opinion, some change in BOJ policy is likely in the coming months. However, it may not be substantial.”
“Assuming the BoJ’s yield curve control policy changes in the spring, we anticipate USD/JPY at 128 over three months, but expect volatility around the March policy meeting, given the risk that the policy remains unchanged again.”
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.
