The concerns of financial instability saw an influx of safe haven buying for currencies such as the Japanese Yen. Economists at ANZ Bank expect the USD/JPY pair to move gradually lower toward 124 by the end of the year.

BoJ pivot still a key focus

“In the immediate term a policy shift looks unlikely. Incoming Governor Kazuo Ueda (whose term will start from 9 April), has publicly supported ultra-loose monetary policy even before his nomination.” 

“ If a policy shift does materialise, which we anticipate being after Q2 this year, the JPY will rally on more favourable yield differentials.”

“We forecast USD/JPY to fall progressively to 124 by the end of the year.”