FXStreet reports that economists at HSBC see USD/JPY going slightly higher over the near-term, before correcting in the second half of the year.
“The BoJ is currently doing a review of its monetary policy easing and will announce the findings on Friday. The aim is to make monetary policy easing more sustainable for the long haul, as the 2% inflation goal still looks rather elusive, with progress being derailed by the pandemic. We believe the review may cause some temporary volatility in USD/JPY.”
“We can envision USD/JPY falling in a knee-jerk reaction, if the BoJ is interpreted as not being sufficiently dovish (by widening the YCC range, tapering exchange-traded fund (ETF) purchases, and making only minor tweaks to the Negative Interest Rate Policy (NIRP).”
“We believe USD/JPY will fluctuate with an upward bias over the near-term, before correcting slightly in 2H21. The correction could come about as more economies make progress with their vaccination programmes, thereby narrowing the US cyclical advantage, for example.”
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.