USD/JPY: Unless the BOJ reviews the YCC settings, the yen will continue to weaken, according to Goldman Sachs.

Goldman Sachs analysts stated that, despite the dovish Bank of Japan (BOJ), the Japanese yen currency will likely continue to fall, and that forex market (FX) intervention will have very little impact on the yen currency's fall.

April 29, 2022 - 12:12 PM 244 views

USD/JPY: Unless the BOJ reviews the YCC settings, the yen will continue to weaken, according to Goldman Sachs.

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© USD/JPY: Unless the BOJ reviews the YCC settings, the yen will continue to weaken, according to Goldman Sachs.

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Goldman Sachs analysts stated that, despite the dovish Bank of Japan (BOJ), the Japanese yen currency will likely continue to fall, and that forex market (FX) intervention will have very little impact on the yen currency's fall.

 Important Comments

 The yen currency's market decline will continue as long as the Bank of Japan (BOJ) maintains its loose monetary policy and yield curve control and US income rises.

 We certainly find it difficult to watch the intervention drive the long-term admiration in absence of any expectations of the yield control curve shifting.

The Forex market(FX) intervention will have a little effective whenever the  yield risks are still tilted to the upside.

However, there is a high risk of intervention but the yen currency will come out as a superior strength only if the Bank of Japan (BOJ) reviews its YCC settings and the currency rate should have a differential of the 40 bps US drops.

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