USD/JPY: Scope for only a moderate move lower in the coming months – Rabobank
Source Fxstreet
Is the Bank of Japan (BoJ) ready to act? Economists at Rabobank analyze Yen’s outlook ahead of the BoJ’s March meeting.
USD/JPY to edge lower into the BoJ’s March meeting
While we favour an April rate hike over a move in March, we expect USD/JPY to edge lower into the March 19 meeting in anticipation of an early move.
Even on a steady policy outcome this month, we expect downside pressure on the JPY to be limited as the market turns its attention towards the likelihood of a rate hike next month.
That said, given the resilience of the US economy and related US inflation risks, we see downside potential in USD/JPY to be limited to a move back to 140.00 on a 12-month view.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Solana (SOL) price trades in green, above $242 at the time of writing on Monday, after breaking out of a parallel channel last week with bulls aiming for record highs.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) hover around key levels after recovering by nearly 4%, 7%, and 6%, respectively, last week.
Gold (XAU/USD) retreats slightly after touching a fresh record high, around the $3,689-3,690 region during the Asian session on Tuesday, amid some repositioning trade ahead of key central bank events.
The USD/CHF pair falls sharply to near 0.7915 during the European trading session on Tuesday.
The US Dollar (USD) stays under modest bearish pressure early Tuesday as investors adjust their positions ahead of the Federal Reserve's critical two-day policy meeting.
Related Instrument
