The Japanese yen (JPY) is low, down 0.9% compared to the US dollar (USD) and underperforming all G10 currencies in response to the last BOJ political meeting, notes the FX strategist for Scotiabank FX.
USD / JPY extends its rebound on the level of support 140
“The target rate of BOJ has remained unchanged at 0.50%, as expected. However, market participants react to growth and inflation forecasts of the Central Bank as well as an extension of the time horizon on which it expects to achieve its inflation target of 2%.”
“Governor Ueda's press conference underlined the uncertainty resulting from American prices and has offered no feeling of clear timing around the next increase in planned rates. The second cycle of American / Japan trade negotiations should continue until the end of the week.”
“The USD / JPY extends its rebound on the level of support 140 and pushes around 145. We look towards short -term resistance around 147.50 and foresee a significant resistance to the 200 -day MA for almost 150 years.”
