Societe Generale forecasts USD/JPY under 140 in Q2 of 2024

<p>
Key Insights: </p><p>
1. BoJ Meeting Outcomes: </p><p>The BoJ maintained its current policies but indicated positive prospects for wages and inflation, along with concerns about the side-effects of negative rates and yield curve control, suggesting possible policy changes by mid-2024. </p><p>2. Market Reactions: </p><p>The market remains skeptical about BOJ policy change, but the yen is supported by a calmer U.S. bond market and China's potential equity market support plan, financed through repatriation of foreign currency holdings. </p><p>
3. Yuan and Other Currencies: </p><p>The Chinese yuan, Australian dollar, and South Korean won have risen slightly more than the yen in response to these developments. </p><p>4. USD/JPY Projections: </p><p>Based on yield forecasts, SocGen contends that USD/JPY should currently be closer to 140 than 150 and is likely to fall below 140 in the second quarter of 2024, ending the year around 135.</p><p>–</p><p align="left">
This
summary is via the folks at eFX.
</p><p align="left">
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This article was written by Eamonn Sheridan at www.forexlive.com.