April 28, 2022 - 12:22 PM 279 views
recent developments in the Yen currency, Bank of America (BofA) analysts are
keen to provide their expectations while heading towards the Bank of Japan
(BoJ) policy decision.
Bank of America (BofA) analysts are expecting the Bank of Japan
(BoJ) to hold all the YCC settings, including the +/-25bp band around the 10
year target, which will be unchanged at 28 April MPM.
A dovish BOJ might push the JPY down below 130 yen. But, from the
macroperspective point, the BOfA analysts think, "probably the hike in
fuel costs and the hawkish Fed are the main reasons for the highly priced
USD/JPY currency pairs. But, in the future, the risks may be balanced.
They probably think it will take some time to reduce the pressure
on the yen currency. Since March, Japanese companies are speeding up things;
they have started M&A activity and there is hope of a new university fund
which is likely to invest in foreign market. Therefore, the dip in the USD/JPY
currency pair can be recovered by Japanese companies and investors.