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USD/JPY Testing Multi-Week Highs, Will the BoJ Wait Until the End of July?

June 17, 2024

Via: DailyFX

Talk overnight by Japanese officials was unable to prop up the Japanese Yen with USD/JPY floating back to highs last seen in late April. Bank of Japan governor Kazuo Ueda stressed that he is looking at FX levels and their impact on import prices, while Japan’s PM Fumio Kishida said that it was important to guide policy ‘flexibly’ to end deflation and promote growth. While both officials made market-related comments, the Japanese Yen continued to slip lower, testing levels that have seen FX intervention. The Bank of Japan said last week that they would cut their bond-buying program but would not announce by how much until the next BoJ meeting on July 31st. Unless the US dollar turns sharply lower, the BoJ will likely have to intervene to prop up the Yen as verbal intervention is no longer working.

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