Deutsche Bank says that while Ueda didn't give much in the way of clues over policy change at his press conference:
- Our Japanese economyist still thinks the most likely outcome is a suspension of yield curve control at the Governor’s first policy meeting in two weeks.
DB says long yen is one of their favoured strategic vies due to:
- Japanese core inflation is now running at similar levels to the US and Euro-area and continues to accelerate
- the services sector in Japan is strengthening due to delayed COVID re-opening
- the decline in energy prices is a big boost to the external balance
- USDJPY looks too high versus the existing policy stance likely helped by yen-negative seasonals over March
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the next BOJ Statement on Monetary Policy is due on April 28, along with updates to the bank's Outlook for Economic Activity and Prices
