USD/JPY is trading around 136.50 after it was unable to break above 138 earlier this week. Still, economists at BBH expect the pair to eventually test the July 14 high near 139.40.

Bank of Japan to maintain powerful monetary easing

“With risk sentiment improving from China stimulus plans and the BoJ remaining ultra-dovish, the USD/JPY pair should move higher to eventually test the July 14 high near 139.40.”

“MPC member Nakamura said that the current state of the economy doesn’t allow for a change in the bank’s easing bias. We believe Nakamura’s view represents the consensus and supports our view that current policy will be maintained for the foreseeable future. Next meeting is September 21-22 and no change is expected then.”