A snippet from MUFG on the Bank of Japan surprise yesterday, on yen implications:
- this decision will impact all FX market players – corporate hedging behaviour; investor hedging behaviour; speculative behaviour; and capital flows.
- The shift from the BoJ merely reinforces a strong and compelling view that the divergence at the heart of the surge in JPY selling in 2022 is going to reverse in 2023, resulting in a reversal of JPY selling that took the Yen to record levels of under-valuation.
- USD/JPY could be into the 120’s sooner than we expected.
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ICYMI:
Follow through for the yen in Europe and America times:
- ForexLive European FX news wrap: Yen flying high after BOJ policy tweak
- Forexlive Americas FX news wrap: Yen hits new highs as the BOJ fallout continues
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Epic USD/JPY move on the Bank of Japan bombshell:
