Commerzbank German experts presented their estimates for the movements of the Japanese yen during the coming period; In this regard, economists suggested the possibility of increasing expectations that the Bank of Japan may abandon its very expansionary monetary policy in some way during its meeting next week, which will support the Japanese yen in the currency market; This is if core inflation data to be released next Friday reveals a continued rise in inflation.
However, analysts recommended the importance of the Bank of Japan being more clear this meeting and not along the lines of its December 2022 meeting when it announced the widening of the yield curve “only” which caused a lot of damage in the short term, but then the Bank of Japan clearly announced that it did not change anything about his monetary policy; Which affected the performance of the Japanese yen.
Deutsche Bank experts added that the Bank of Japan’s new governor, Kazuo Ueda, did not start the hoped-for reversal of accommodative policy since his tenure in office, but perhaps the time has come now; Which will reflect positively on the movements of the Japanese yen.
Commerzbank: The main risk to the Japanese yen is not intervention in the forex market
#Japanese #yen #strong #support #case