JPY: Back to Plan A - TDS

Ned Rumpeltin, European Head of Currency Strategy at TD Securities, suggests that the April BoJ policy decision is now one of a growing list of central bank outcomes that has caught market participants wrong-footed in recent months.

Key Quotes

“This largely reinforces broader trends in real interest rates this year.

Against the backdrop of a dovish Fed and prospective BoJ easing at its June meeting (ahead of elections in July), we think USDJPY will remain under pressure. 107.63 represents crucial support but a break below this threshold will strongly augur for a test of 105.44.”