Forex Flash: JPY awaits BoJ, looks ripe for decent retracement – TD Securities
Forex pairs in this Article » USD/JPY
FXstreet.com (Barcelona) - More Japanese officials' talk pushed the JPY for one more fall today, allowing the USDJPY to touch a marginal new high above 90, but all eyes are now focused on the Bank of Japan meeting early next week: "Expectations for the meeting became more solidified through yesterday's session where we saw headlines that the focus will be on measures to achieve the much discussed 2% inflation target", wrote TD Securities analysts. "With the idea now circling that they could scrap the asset purchase target level altogether, and instead buy unlimited assets until the inflation target is reached, the bar is set quite high", they added, meaning that even if the BoJ introduces much easier policy there is the potential that they disappoint, and that the JPY gains somewhat."We have been mentioning it for several days now, but the JPY looks ripe for a decent retracement of its sharp depreciation over the past 3-4 months", they concluded.