- Analytics
- News and Tools
- Market News
- USD/JPY: Room for the Yen to rebound sharply if YCC is adjusted – MUFG
USD/JPY: Room for the Yen to rebound sharply if YCC is adjusted – MUFG
Economists at MUFG see as more likely than not that the BoJ will shift its policy by altering the current YCC framework. Therefore, USD/JPY is set to fall sharply.
BoJ YCC speculation to build
We are anticipating a build-up in speculation of a change to YCC as we move toward the BoJ policy meeting on 28th July. While it seems more likely than not now that the FOMC will hike on 26th July, the market is now fully priced for that and we still have the key CPI data this week, which shows a strong consensus of further declines in inflation.
The balance of risk for core CPI seems to be more skewed toward a weaker print given the fact that housing-related inflation seems to be declining. But the Yen should find better support at these levels.
Expectations on a YCC change may have started to build this week but expectations remain low so there is scope for a shift in expectations to help the Yen. The rhetoric from the MoF also points to greater opposition to Yen depreciation and Leveraged Funds remain very short at present.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
