I wrote earlier that HSBC sees USD/JPY going as high as 128 as the Bank of Japan eases monetary policy further in April
Link is here
But ... hold on a minute, says Bank of Tokyo-Mitsubishi UFJ ...
Japan strategist Takahiro Sekido places a 60% chance on no further monetary policy expansionary easing. He cites:
- Political pressure on the BOJ has eased significantly as coincident and leading indices suggest economic improvement, as do as exports and production
- The finance ministry is likely happy with the current low JGB yields despite historically
- Financial conditions are currently stable
On the other hand, Sekido allows a 40% probability to the BOJ extending its time frame for JGB purchases in October 2015 or January 2016
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Snooze time for the yen ahead of the NFP later:
via Bloomberg
