[KnovaWave]

Yen pairs dominated after the BoJ leaving monetary policy unchanged sparking a 300-pip rally in dollar yen which flowed across yen crosses. Japan’s CP
[See the full post at: Forex Traders Weekly Outlook – Risk on Flows Heading into Chinese New Year]

[Truman]

Bank of America Global Research “We look to sell USD/JPY rallies and expect more upside potential for GBP”

“We would sell USDJPY rallies, as we believe the BoJ unconventional policies are not sustainable, and our inflation forecast in Japan for 2023 is well above the market consensus —3% vs. 1.9%,” BofA notes.

“We see more upside potential for GBP in the short term, on improving chances for a compromise with the EU on the outstanding Brexit issues, particularly those related to the Northern Ireland protocol. However, we remain concerned about the GBP outlook beyond such a deal, as the UK is already in the stagflation scenario that we see as risk for the rest of the world later this year,” BofA adds.

[Author]

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