BNP Paribas say Japanese government's 'line in the sand' for USDJPY is around 145

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BNP Paribas say Japanese government's 'line in the sand' for USDJPY is around 145

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• The Bank of Japan (BoJ) may act before the Ministry of Finance (MoF) to address the weakening yen, BNP Paribas analysts have predicted.
• The Japanese economy is in a stronger position than it was last year, benefiting from yen weakness through goods and services exports. However, high inflation and potential early elections could motivate the Prime Minister to prevent the yen from weakening too much and drawing attention to the rising cost of living.
• BNP Paribas analysts believe that the government's 'line in the sand' hasn't changed much from last year and see a high probability of yen-supportive intervention if the USDJPY surges to around 145.
  Nonetheless, they speculate that verbal push back from the MoF may only slow the pace of JPY weakness and is unlikely to trigger a sustained strengthening in the currency.

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: BNP Paribas say Japanese government's 'line in the sand' for USDJPY is around 145

forexlive.com