- The Bank of Japan has decided to maintain its easing policy amid growing concerns about slow growth, and is also committed to conducting fixed-rate operations, which triggers a sharp Japanese yen depreciation.
- The yen is not part of the Bank of Japan's considerations.
- As for FX forecasts, USD/JPY is already at our forecast high of 130, and we will be minded to revise the profile higher given it looks like the dollar can stay strong/strengthen further over the next three to six months.
For further details see:
Bank of Japan: Fight Against 'Deflation' Is A Lot Harder Than We Think