

USD/JPY: Upward adjustment to BOJ rate expectations curtails JPY upside– BBH

USD/JPY edged up just under 150.00, BBH FX analysts report. USD/JPY faces important resistance around 152.00 "Japan February CPI was mixed and does not move the dial on BOJ rate expectations. Headline and Core ex. food CPI slowed less than anticipated to 3.7% y/y (consensus: 3.5%, prior: 4.0%) and 3.0% (consensus: 2.9%, prior: 3.2%), respectively." "Core ex-fresh food, energy matched consensus and rose to an 11-month high at 2.6% y/y vs. 2.5% in January. The swaps market continues to price-in a BOJ terminal rate of 1.00% to 1.25% over the next two years with the next full 25bps hike in September." "The limited room for a further upward adjustment to BOJ rate expectations curtails JPY upside. Meanwhile, JPY downside is contained as the BOJ has low tolerance for a weaker currency. USD/JPY faces important resistance at the 200-day moving average around 152.00."

Learn more

Publication date:

2025-03-21 12:36:51 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.