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Forex pairs in this Article » USD/JPY (London) - Yujiro Goto, strategist at Nomura notes that the USDJPY has been trading within a narrow range recently. After reaching 103 in late May, the momentum of JPY weakness looks to be weakening now.

Key Quotes:

“The consumption tax hike debate, which is now at the center of Japanese policy discussions, poses uncertainties for the Japanese financial market”.

“While the tax debate has been focused, the BOJ has been quiet”.

“We expect the BOJ to leave its policy unchanged at its meeting this week (4-5 September), and the next accommodation to take place mid-next year, not this year”.

“A quiet BOJ may bore some investors, partly explaining recent weaker momentum in JPY depreciation. However, looking at the BOJ‟s past record on monetary policy, this quietness is unusual, pointing to further JPY weakness to come”.
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