BoJ to refrain from action – BTMU

By FXStreet FXStreet (Guatemala) – Analysts at Bank of Tokyo mitsubishi noted that the FOMC statement certainly helped support the dollar versus the yen although dollar buying was more contained versus the yen given the imminent uncertainty related to the monetary policy announcement by the BOJ.

Key Quotes:

“Both the previous QE announcements came at meetings when the semi-annual report was released and hence speculation is high. However, we are maintaining our view that the BOJ will refrain from any action.”

“There is certainly some element of positioning related to a move and hence we would expect the yen to strengthen in the immediate aftermath of the announcement. Still, USD/JPY should settle in or around the 119.00- 120.00 level and the dollar is likely to find strong interest to buy given the increased expectations of a Fed rate increase on 16th December.”

“The data from the US next week ahead of the payrolls report on 6th November should also be supportive for the US dollar. The IPO for Japan Post will also take place on 4th November and enthusiasm for this very large IPO should help sentiment, although the impact on USD/JPY should not be significant.”
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Source:: FX Street