Yen Primed for Appreciation Amid Hawkish Signals from Bank of Japan
Strategists anticipate further gains for the yen following the Bank of Japan's (BOJ) hawkish stance and interest rate hike.
Analyst Insights:
* Homin Lee, Lombard Odier: The BOJ's policy normalization and Japan's strong fundamentals will limit USD/JPY upside to around 160, potentially leading to yen appreciation within a year.
* Wee Khoon Chong, BNY: The rate hike supports the yen, with USD/JPY likely to decline further if BOJ Governor Ueda maintains a hawkish tone.
* Wei Liang Chang, DBS Bank: Short-term rate differentials should buoy the yen despite the anticipated nature of the hike. However, a strong USD could push USD/JPY towards 160.
* Rieko Otsuka, MCP Asset Management: Market focus shifts to Ueda's press conference for insights on future hikes.
* Hidetoshi Ohashi, Mizuho Securities: Higher terminal rates could impact corporate bond markets.
* Yujiro Goto, Nomura Securities: The BOJ may still consider rate hikes towards 1%.
* Eugenia Victorino, Skandinaviska Enskilda Banken: Governor Ueda's stance will shape expectations for the next hike, with June remaining a potential time frame.
* Richard Franulovich, Westpac Banking Corp.: The BOJ's revisions and signaling suggest an ongoing hawkish approach.
* Sean Callow, Intouch Capital Markets: The BOJ's decision aligns with hawkish expectations and indicates continued rate hikes.