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USD/JPY around 145 could be the trigger for Bank of Japan policy change

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UBS SuMi TRUST Wealth Management in Japan with comments on the yen and a likely level to watch:

  • Any rapid yen weakening, like toward 145 (to the U.S. dollar) in the short-term, might trigger an early (policy) adjustment as the BOJ is in favour of a stable yen move in tandem with the fundamentals,

On the ‘early policy adjustment’, SMBC Nikko Securities:

  • we should be on guard against the scrapping of yield curve control in July when the BOJ releases its quarterly outlook report and likely revises upward its inflation forecast

This is referring to the next Bank of Japan meeting, July 27 and 28, when the Bank will issue revised inflation forecasts, and speculation of a YCC policy change is tweak is igniting:

Gonna be fireworks either way at this July meeting coming.

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