Key Insights:
1. BoJ Assembly Outcomes:
The BoJ maintained its present insurance policies however indicated constructive prospects for wages and inflation, together with issues in regards to the side-effects of destructive charges and yield curve management, suggesting potential coverage adjustments by mid-2024.
2. Market Reactions:
The market stays skeptical about BOJ coverage change, however the yen is supported by a calmer U.S. bond market and China’s potential fairness market help plan, financed by way of repatriation of international foreign money holdings.
3. Yuan and Different Currencies:
The Chinese language yuan, Australian greenback, and South Korean gained have risen barely greater than the yen in response to those developments.
4. USD/JPY Projections:
Primarily based on yield forecasts, SocGen contends that USD/JPY ought to at the moment be nearer to 140 than 150 and is prone to fall beneath 140 within the second quarter of 2024, ending the 12 months round 135.
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