USD/JPY: markets expecting BoJ intervention - BTMU

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Analysts at Bank of Tokyo Mitsubishi explained seasonal Japanese investor cash repatriation has encouraged USD/JPY drop.

    Further, foreign tourists—chiefly Chinese visitors over the Chinese New Year—have supported JPY buying. Exporters have been recovering slowly, also pushing USD/JPY lower.

    The BoJ’s negative interest rate policy under QQE has not encouraged risk sentiment to recover yet. Looking ahead, US retail sales and Japan’s 4Q GDP data may test USD/JPY direction. Weak data could propel USD/JPY further down.

    The sharp strengthening of the yen has fuelled speculation that Japan could intervene directly to dampen yen volatility. Officials have already intervened verbally signalling concern over recent yen moves."
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