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.
“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.”