In the bigger picture, the pair is seeing a neat double-bottom bounce off the 140.00 mark. And the jump higher today sees the pair now move to its highest in three weeks. It’s largely a yen move here as the BOJ left interest rates unchanged, before governor Ueda came out to deliver some less hawkish (more dovish) messaging.
Ueda said that there’s a lot of uncertainty now stemming from US tariffs and how that is impacting the global outlook. He adds that inflation and wage pressures are now expected to cool and that there will be a delay to reaching their 2% price target. On the latter, Ueda says that it is “not simple” anymore to just talk about hitting the inflation target as such.
Overall, it points to a further pause in the current monetary policy stance. As things stand, that is likely to extend to June at the very least.
This article was written by Justin Low at www.forexlive.com.
