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USD/JPY: FOMC and BOJ main focus from here - Scotiabank

FXStreet (Guatemala) - Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that the Yen is quiet, consolidating ahead of the FOMC with USD/JPY respecting Tuesday’s level of anticipated support around 120.20.

Key Quotes:

"We maintain a fundamentally-driven bias to JPY weakness (USDJPY gains) on the basis of central bank policy divergence, however we acknowledge the potential for short-lived haven-driven gains on the back of near-term event risk—specifically, the FOMC at 2pm EST and its implications for the broader market tone.

Focus is tightening on Friday’s BoJ (Thursday NA evening) policy decision, with rumors of an extension of the timeframe in which the BoJ expects to reach its inflation target. Such an extension would be JPY negative, implying a longer period of asset purchases."

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