28 Apr 2016
BoJ: market on the wrong foot, again - TDS
Analysts at TD Securities noted the recent BoJ meeting's outcome and a market on the wrong foot.
Key Quotes:
"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."
Key Quotes:
"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."