The latest from Deutsche Bank on the Bank of Japan and JPY. Analysts at the bank are not expecting much of a rally for the yen.
They say that they see little reason for the Bank of Japan to tighten its monetary policy aggressively and as such little tailwind for the JPY on this front. It would need a more assertive rate hike cycle to prompt an unwind of the yen carry trade.
DB add that on the other side of the ledger, the yen is unlikely to rise much without a US recession (and consequently lower rates in the US).
