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USD/JPY seen shifting lower as markets unwind Fed tightening bets

Rabobank expects limited BoJ action in October, with attention on December, and keeps a three month USD/JPY target of 155.00.

Reported · Written up by our desk · Major Pairs

Rabobank strategist Jane Foley said markets see limited scope for another Bank of Japan policy move at the October meeting, with expectations more focused on December, according to FXStreet.

Foley argued that investors have priced in too much Federal Reserve tightening for next year, creating room for USD/JPY to weaken as those expectations are unwound, and she maintained a three month target of 155.00.

FXStreet also noted that elevated US bond yields, alongside geopolitical uncertainty, has helped keep the US dollar supported even as bets for an October Fed hike receded.

Latest closeUSD/JPY 157.94 ▲0.1%

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