USD/JPY may turn lower in the event BoJ surprises on Friday – OCBC

Market news

24 July 2023

USD/JPY may turn lower in the event BoJ surprises on Friday – OCBC

USD/JPY rebounded sharply last week. Economists at OCBC analyze the pair’s outlook ahead of BoJ meeting.

Risk for USD/JPY is asymmetric going into the MPC

Our house view still expects the BoJ to move away from YCC, NIRP regime at some stage this year as inflationary pressures broaden; growth outlook improves and upward pressure on wage growth remains intact.

In the event BoJ surprises on Friday, then we may see USD/JPY turn lower as markets may be caught wrongfooted.

We believe the risk for USD/JPY is asymmetric going into the MPC.

BoC Survey: Participants see BoC holding rates at 5.0% until end-2023

GBP/USD: Support from the confirmed uptrend from last September at 1.2762 to ideally hold – Credit Suisse

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