JPY pushes lower by dovish BoJ pulling back on tightening clarity – Scotiabank
The Japanese Yen (JPY) is weak, down 0.9% against the US Dollar (USD) and underperforming all the G10 currencies in response to the BoJ’s latest policy meeting, Scotiabank's Chief FX Strategist Shaun Osborne notes.
USD/JPY is extending its bounce off of the 140 support level
"The BoJ’s Target Rate was left unchanged at 0.50%, as expected. However, markets participants are responding to the central bank’s downgraded growth and inflation forecasts as well as an extension of the time horizon over which it expects to reach its 2% inflation target."
"Gov. Ueda’s press conference stressed uncertainty arising from US tariffs and offered no clear sense of timing around the next anticipated rate hike. The second round of US/Japan trade negotiations is set to continue through the end of the week."
"USD/JPY is extending its bounce off of the 140 support level and pushing toward 145. We look to near-term resistance around 147.50 and anticipate significant resistance around the 200 day MA near 150."
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