USD/JPY could fall a bit lower to 147.00 – ING
|The Japanese Yen (JPY) is experiencing a rebound following the Bank of Japan (BoJ) policy announcement. Economists at ING analyze USD/JPY outlook.
The BoJ revised inflation expectations lower
There were no changes to the Yield Curve Control, and forward guidance remained unchanged. Inflation projections were revised lower from 2.8% to 2.4% for the fiscal year starting in April. The revision was mostly a consequence of declining oil prices, and the inflation path continues to show an overshoot of the target for some time.
Money markets currently price in a 10 bps rate hike in June. Extra help from a declining USD might push USD/JPY a bit lower (below 147.00) today, but we suspect that markets may favour defensive USD positions as the Fed meeting approaches.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.