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21 Jun 2013
Flash: USD/JPY looks higher on policy outlook - DailyFX
FXstreet.com (Córdoba) - The Japanese Yen continued to weaken against its U.S. counterpart following the Federal Open Market Committee, and the USD/JPY looks poised to resume the bullish trend from earlier this year amid the deviation in the policy outlook, according to David Song, analyst at DailyFX.
“As the economic docket is expected to show the headline reading for Japanese inflation contracting an annualized 0.4% in May, the persistent weakness in price growth may encourage the Bank of Japan to provide additional monetary support at the July 11 meeting, and we should see the central bank continue to embark on its easing cycle in the second-half of the year as Governor Haruhiko Kuroda pledges to achieve the 2% target”, Song says.
“As the USDJPY carves out a higher low in June, we should see the pair retrace the decline carried over from the previous month, and the dollar-yen looks poised to mark a higher high given the policy outlook for the Fed and the BoJ", the analyst concludes.
“As the economic docket is expected to show the headline reading for Japanese inflation contracting an annualized 0.4% in May, the persistent weakness in price growth may encourage the Bank of Japan to provide additional monetary support at the July 11 meeting, and we should see the central bank continue to embark on its easing cycle in the second-half of the year as Governor Haruhiko Kuroda pledges to achieve the 2% target”, Song says.
“As the USDJPY carves out a higher low in June, we should see the pair retrace the decline carried over from the previous month, and the dollar-yen looks poised to mark a higher high given the policy outlook for the Fed and the BoJ", the analyst concludes.