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5 Apr 2013
Forex Flash: JPY, beyond the knee-jerk - HSBC
FXstreet.com (Barcelona) - HSBC analysts believe that BoJ activism means that any JPY recovery will be later and smaller.
They begin by commenting that they have raised their annual forecast for USD/JPY to 88 from 80 previously. They write, “We were surprised by the extent of policy easing announced by the BoJ, and further upside in USD/JPY is likely for now. However, it is still uncertain that regime change at the BoJ will translate into actual economic change and success. With much already in the price, if policy fails to spur the economy, some of the move seen in USD/JPY will reverse.”
They begin by commenting that they have raised their annual forecast for USD/JPY to 88 from 80 previously. They write, “We were surprised by the extent of policy easing announced by the BoJ, and further upside in USD/JPY is likely for now. However, it is still uncertain that regime change at the BoJ will translate into actual economic change and success. With much already in the price, if policy fails to spur the economy, some of the move seen in USD/JPY will reverse.”