USD/JPY climbed above 144 as a dovish Bank of Japan cut its growth and inflation forecasts, amplifying downside risks and sending JGB yields lower, while the broader risk environment continued to weigh on the US Dollar, ING’s FX analyst Chris Turner notes.
USD/JPY rally may extend toward 145, but selling likely ahead
“Elsewhere, we’ve seen a dovish Bank of Japan meeting today, where growth and inflation forecasts have been cut, and importantly, downside risks are seen to both. JGB yields have fallen around 5bp across the curve.”
“The double whammy of risk coming out of the dollar and a dovish BoJ has sent USD/JPY above 144. This could extend to 145, but we would expect more sellers to emerge there.”
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