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USD/JPY: Upward adjustment to BOJ rate expectations curtails JPY upside- BBH

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USD/JPY: Upward adjustment to BOJ rate expectations curtails JPY upside- BBH

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New update 2025.03.21 20:45
USD/JPY: Upward adjustment to BOJ rate expectations curtails JPY upside- BBH

update 2025.03.21 20:45

USD/JPY edged up just under 150.00, BBH FX analysts report. 

USD/JPY faces important resistance around 152.00

"Japan February CPI was mixed and does not move the dial on BOJ rate expectations. Headline and Core ex. food CPI slowed less than anticipated to 3.7% y/y (consensus: 3.5%, prior: 4.0%) and 3.0% (consensus: 2.9%, prior: 3.2%), respectively." 

"Core ex-fresh food, energy matched consensus and rose to an 11-month high at 2.6% y/y vs. 2.5% in January. The swaps market continues to price-in a BOJ terminal rate of 1.00% to 1.25% over the next two years with the next full 25bps hike in September."

"The limited room for a further upward adjustment to BOJ rate expectations curtails JPY upside. Meanwhile, JPY downside is contained as the BOJ has low tolerance for a weaker currency. USD/JPY faces important resistance at the 200-day moving average around 152.00."


Date

Created

 : 2025.03.21

Update

Last updated

 : 2025.03.21

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