Economists at Danske Bank are of the opinion that the USD/JPY will fall and reach the 125 level in the next three months. This opinion is based on the Bank of Japan’s (BoJ) monetary policy stance, which is still important to follow regarding USD/JPY +3M. However, it is difficult to imagine any changes in the monetary policy until at least April 28th, when the new governor will have his first monetary policy meeting.
The main drivers for the USD/JPY in the next three months are developments in US Treasury yields and the oil price. The Bank of Japan’s monetary policy stance is still important to follow regarding USD/JPY +3M. However, it is difficult to imagine any changes in the monetary policy until at least April 28th, when the new governor will have his first monetary policy meeting.
The Bank of Japan is the central bank of Japan and it is responsible for the implementation of the country’s monetary policy. The BoJ’s monetary policy is based on its “Quantitative and Qualitative Monetary Easing” (QQE) program, which was introduced in 2013. The QQE program is focused on achieving a 2 percent inflation target by expanding the country’s monetary base. The BoJ has also been engaged in a program of asset purchases, which is aimed at increasing the money supply and stimulating economic growth.
In addition to the Bank of Japan’s monetary policy, the development in US Treasury yields and the oil price will also be important factors in determining the direction of the USD/JPY in the next three months. US Treasury yields are a key indicator of economic activity and the direction of the US economy. The oil price is also an important factor to consider, as it is a major determinant of the USD/JPY exchange rate.
Given the current economic and market conditions, Danske Bank expects the USD/JPY to drop to 125 in three months following more tightening of monetary policy. This forecast is based on the Bank of Japan’s current monetary policy stance, the development in US Treasury yields and the oil price.
Overall, the Bank of Japan’s monetary policy stance is still important to consider when making predictions about the direction of the USD/JPY in the next three months. The development in US Treasury yields and the oil price will also be important factors to consider. Based on the current economic and market conditions, Danske Bank expects the USD/JPY to drop to 125 in three months following more tightening of monetary policy. This forecast is based on the Bank of Japan’s current monetary policy stance, the development in US Treasury yields and the oil price. Investors should keep an eye on these factors in order to make informed decisions when trading the USD/JPY in the next three months.
