BOJ's move unlikely to sustain further JPY strength beyond near-term - BTMU

USD/JPY strategy

BTMU FX Strategy Research discusses USD/JPY outlook, and notes that the pair has weakened overnight in light of the BoJ's decision to scale back government bond purchases.

"It is a further small step towards tighter policy. The BoJ has been slowing the pace of JGB purchases since the second half of 2016 when it shifted its policy focus to yield curve control.

However, the developments overnight on their own are unlikely to prove sufficient to sustain a stronger yen beyond the near-term," BTMU argues.

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