The large reversal in USD/JPY on Friday following the Bank of Japan (BOJ) interest rate decision could be the start of a far larger move in the weeks and months ahead, unless you think the Federal Reserve may be forced to abandon the prospect of rate cuts this year. Given asymmetrical risks for the US rate outlook and increasingly tepid US economic data, selling USD/JPY rallies is preferred given how poorly it has traded around these levels recently. Fed rate cut bets influential on USD/JPY Interest rate differentials have long been a key driver of USD/JPY movements, but not over the past three months. As shown in ... (full story)