In the Asian session on Sunday (April 23), the latest price of USD/JPY was 134.13, and the opening price was 134.24. A few months ago, the Bank of Japan stunned global markets by doubling the cap on 10-year bond yields to 0.5% in a surprise move. Today, Japan’s rising inflation and illiquid bond markets continue to fuel speculation about policy changes.
Most economists believe BOJ officials are cautious about adjusting or removing its yield-curve control policy next week, preferring to wait for more progress towards their stable inflation target. This echoed Ueda’s stance at his inaugural news conference that it was “appropriate” to stick to the existing loose policy. The yen could appreciate 10 percent against the dollar in the coming months, and “technically it could well exceed that,” Rachel said.
The yen is expected to rise to around 120 yen per dollar by the end of the year. As of Friday, the dollar was trading around 134 yen against the yen.
