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Next couple of BOJ meetings no catalysts for JPY weakness - Nomura

FXStreet (Bali) - Based on Thursday's BoJ decision, Nomura Strategists note that we should not expect the next couple of BOJ meetings to be catalysts for JPY weakness.

Key Quotes

"The BOJ has left its policy unchanged. The BOJ believes that the economy is continuing to grow, as the employment and income situation improves steadily. Governor Kuroda also remains optimistic on the economic outlook, suggesting the likelihood of a near-term easing remains small."

"Thus, we cannot expect the next couple of BOJ meetings to be catalysts for JPY weakness. At the same time, he clearly stated that JPY weakness is not negative for the Japanese economy, even after the recent USD/JPY rally."

"In addition, he is clearly committed to keeping the 2% inflation target, though there have been some discussions on changing the target, as 2% may not be necessary after exiting deflation."

"In the medium term, his clear stance on JPY weakness and the 2% inflation target is positive for our JPY weakness scenario, especially as the Fed's monetary policy is approaching a turning point."

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