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USD/JPY Forecast: BoJ’s JGB Tactics and US Sentiment Key to Yen’s Path
On Friday (June 14), the Bank of Japan monetary policy decision and statement will impact buyer demand for the USD/JPY. Economists expect the Bank of Japan to leave interest rates unchanged. However, the markets expect the Bank of Japan to consider scaling back government bond (JGB) purchases. The pace of scaling back JGB purchases warrants investor focus, with the BoJ eager to prevent market disruption. Cutting JGB purchases would push longer-term interest rates higher and narrow interest rate differentials with the Fed. Given concerns about the effects of a weaker Yen on the Japanese economy, reducing JGB purchases ... (full story)