The USD/JPY pair is readying for an upward surge.
Following a brief pause, the Japanese yen, in tandem with the US dollar, has resumed its retracement. The current USD/JPY exchange rate is positioned at 148.54.
In a notable development, a senior official from the Bank of Japan, Shinichi Uchida, the deputy manager of the Central Bank, expressed the view that it is challenging to envision a scenario where the regulator swiftly raises interest rates.
Uchida emphasized that even if the Central Bank decides to terminate its negative interest rate policy, outlining a clear path for promptly increasing borrowing costs would be a complex task. Once the BoJ decides to abandon its negative interest rate policy, financial conditions in the Japanese economy are expected to remain relatively favorable. Any steps toward tightening will be executed cautiously and progressively.
The yen responded to these comments with a decline.
The conclusion of the era of negative interest rates appears to be on the horizon, as monetary policymakers deliberate on future strategies. However, the precise timeline for abandoning this ultra-soft monetary policy remains uncertain.
The post JPY is Forced to Pull Back: Overview for February 08, 2024 appeared first at R Blog – RoboForex.