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1 Apr 2013
Forex Flash: BoJ may be set up to disappoint (in a JPY-positive way) - TD Securities
FXstreet.com (San Francisco) - The Bank of Japan is scheduled to publish its interest rate and monetary policy decision next paril 4th at 3 GMT (12m Tokyo time) and market is expecting the BoJ to hol rates at 0.1%. But the real focus will be the new Governor Kuroda's announcements.
"The BoJ could be the biggest highlight considering it is the new Governor Kuroda’s first, and he is expected to announce significant stimulus measures," points the TD Securities research team Shaun Osborne
and Greg Moore .
"Nevertheless," they continue. "we continue to believe that a lot of negative JPY news (strong monetary stimulus) has already been priced in since the autumn which means the BoJ may be set up to disappoint (in a JPY-positive way)."
In this way, the "USD/JPY currently looks more vulnerable to further weakness."
"The BoJ could be the biggest highlight considering it is the new Governor Kuroda’s first, and he is expected to announce significant stimulus measures," points the TD Securities research team Shaun Osborne
and Greg Moore .
"Nevertheless," they continue. "we continue to believe that a lot of negative JPY news (strong monetary stimulus) has already been priced in since the autumn which means the BoJ may be set up to disappoint (in a JPY-positive way)."
In this way, the "USD/JPY currently looks more vulnerable to further weakness."