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6 Feb 2013
Forex Flash: USD/JPY touches 94 encouraging strong Nikkei gains – BBH
Brown Brothers Harriman analysts note that news that BOJ Governor Shirakawa will step down a few weeks early, in line with the end of his deputies’ terms, is seen as bringing forward the timing of more aggressive monetary policy.
They write, “In addition, the IMF’s Lipton (formerly at the US Treasury) endorsed the new 2% inflation target. The G20 meet February 15-16 and the push back against Japan is likely to be limited. Japanese officials appear to have already backed away from citing price targets and this will also help keep the focus on Japanese policies rather than rhetoric. Initial support for the dollar is near JPY93.50, while many have their sights set on a test on JPY95 before the week is out.”
They write, “In addition, the IMF’s Lipton (formerly at the US Treasury) endorsed the new 2% inflation target. The G20 meet February 15-16 and the push back against Japan is likely to be limited. Japanese officials appear to have already backed away from citing price targets and this will also help keep the focus on Japanese policies rather than rhetoric. Initial support for the dollar is near JPY93.50, while many have their sights set on a test on JPY95 before the week is out.”