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USD/JPY to remain supported while waiting for another Fed rate hike in June – Commerzbank

Commerzbank economists analyze the USD/JPY outlook.

Japanese officials are likely to take a tougher tone in the coming weeks.

“In view of the high levels of inflation, the best approach to support the yen would be a reversal of monetary policy. However, it seems that the BoJ is still a long way from doing so.. Intervening in a situation like this, that is, following a supportive strategy against the wind, would probably only accelerate the rate of depreciation of the Yen.”

If the US central bank sticks to its hawkish rhetoricwith the market increasingly betting on another Fed rate hike in June, USD is likely to remain supported against JPY for now. So it’s possible that Japanese officials will use a tougher tone in the coming weeks.”

Source: Fx Street

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