Japanese Yen: Higher Q4 range projected – Standard Chartered
Standard Chartered’s Chong Hoon Park and Nicholas Chia expect the Bank of Japan (BoJ) to deliver a 25bps rate hike in September but maintain a gradual normalisation path.
Standard Chartered's analysts Chong Hoon Park and Nicholas Chia project a higher range for Q4's Japanese Yen, anticipating the Bank of Japan (BoJ) to hike the policy rate by 25 basis points to 1.25% in their September meeting. The duo emphasizes that the Japanese Yen's positives are already priced in, projecting the currency pair to return to the upper half of the 155-160 range.
They argue that USD/JPY will not fall due to BoJ tightening alone, and expect the BoJ to adopt a gradual normalization path. USD/JPY has been pushing higher toward 155.00, waiting for more upside as traders await the FOMC and BoJ meetings. Fed rate-hike bets and oil-driven inflation risks are supporting the US Dollar and weighing on the currency pair.
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