USD/JPY vigilant on next BoJ meeting – Danske Bank

Senior Analyst at Danske Bank Kristoffer Lomholt notes the Japanese Yen remains vigilant on the upcoming BoJ meeting next week.

Key Quotes

“In FX markets, a recent USD/JPY decouple from 10Y rates spreads suggests investors have positioned for a possible policy twist from the BoJ at the 31 July meeting”.

“We do not expect the BoJ to adjust its policy next week, however, and if we are right, it should have a positive impact on the JPY and Japanese FI market”.