USD/JPY to trade above 150.00 sustainably – Credit Suisse USDJPY BOJ Banks
is “only” around 1.5% stronger than it was at its peak just shy of 146.00 on 22 Sep when intervention started. Economists at Credit Suisse expect the pair to move above 150.“Data from Japan’s MOF released on 31 Oct showed that Japan spent around JPY 6.3 trillion on FX intervention in October, compared to JPY 2.8 trillion in September.
“Japanese media suggests the main umbrella union Rengo will ask for wage hikes of 5% next year, up from the 4% level it wanted for this year . With longer-term inflation expectations rising too, it seems Kuroda still sees this as a unique opportunity to reset Japan’s inflation mindset and is unwilling to let go. We suspect that over time this will cause USD/JPY to trade above 150.00 sustainably, and we think dips in USD/JPY to recent lows around 145.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY jumps back above 148.00 boosted by bright US dataThe greenback surged from session lows at 147.00 to pare losses from the Asian and European sessions and return to levels above 148.00. The release of
Read more »
USD/JPY slides back to 147.00 mark amid weaker USD, eyes ADP report ahead of FOMCThe USD/JPY pair comes under some renewed selling pressure on Wednesday and drops back closer to the overnight swing low, around the 147.00 mark durin
Read more »
USD/JPY marches towards 149.00 as hawkish Fed bets soar, PMIs in focusThe USD/JPY pair has rebounded firmly from around 148.60 and is marching towards the round-level resistance of 149.00 as investors are pouring their f
Read more »
GBP/USD: A move to 1.12 is possible if BoE only hikes 50 bps – Credit SuisseKey to near-term GBP direction is Thursday’s Bank of England (BoE) rate decision. If it reverts to type with only a 50 bps rate hike, the pound has a
Read more »
AUD/JPY extends gains above 95.00 ahead of RBA policyThe AUD/JPY pair has delivered an upside break of the immediate hurdle of 95.16 in the early Asian session. The asset is aiming higher ahead of the in
Read more »