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Forex pairs in this Article » USD/JPY
FXstreet.com (Barcelona) - In JPMorgan base case, they are not expecting USDJPY to trade significantly above 90, "since the implementation risks surrounding 'Abenomics' remains high" the Japan-based Global FX Strategy Team at JPMorgan said.

JPM notes: "The BoJ meeting on Jan 21-22 is the most important near-term event. We expect the introduction of a 2% inflation target as well as open-ended asset purchases to the tune of ¥4 trn per month. However, as these BoJ actions are likely priced in and JPY shorts have been stretched, whether the market will sell more JPY in the case that BoJ acts as we expect is unclear."

"After the next BoJ meeting, market will shift its focus towards the next BoJ governor and deputy governors. Reports suggest that the government is expected to submit the names of the candidates to the Diet by the end of February. Our economists believe that Haruhiko Kuroda, the President of the Asian Development Bank is the top-running candidate for the next governor" JPM adds.
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