USD/JPY: More verbal intervention if the bounce accelerates toward 145 – SocGen

Economists at Société Générale analyze USD/JPY outlook ahead of the BoJ meeting.

BoJ forecast to keep YCC settings unchanged

BoJ officials see little urgent need to address the side effects of its YCC programme at this point. Discussions and a final decision will be made on Friday. 

It would be an almighty surprise if they tweaked the band and would trigger a seismic retracement in USD/JPY and other JPY crosses considering the shifts last week. The BoJ is likely to defer a decision to September. Hopes are that until then, the Fed will keep rates on hold. 

We should prepare for more verbal intervention if the bounce accelerates towards 145 after the Fed decision on Wednesday.