EUR/JPY has lost almost 6% since the end of November. The economists of Societe Generale analyze the pair’s outlook ahead of the Bank of Japan (BoJ) meeting.
BOJ forecast to remain unchanged
We do not believe that the BoJ will surprise. The yield curve configuration (YCC) and the monetary policy rate are expected to remain unchanged. The bank’s comments on the virtuous cycle from prices to wages will be key to understanding whether it is confident that inflation will approach the 2% target in a sustainable and stable manner. In our opinion, adjustments to YCC or abandonment of NIRP unlikely before April.
He EUR/JPY must hold on to 154.00 to avoid falling towards late July low of 151.50. The 200-DMA offers support at 154.34.
Source: Fx Street
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