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USD/JPY Forecast: 158 in View on Fed Chatter and Bank of Japan Silence
The Bank of Japan (BoJ) could influence buyer demand for the USD/JPY on Tuesday (May 21). Speculation continues to grow about a June BoJ interest rate hike. However, on Monday (May 20), the USD/JPY extended its winning streak to three sessions. Interest rate differentials remain firmly in favor of the US dollar despite the expectations of the BoJ and Fed moving in opposite directions. A June BoJ interest rate hike may not be enough to curb speculative moves against the Japanese Yen. Moreover, interest rate differentials will continue to expose the Japanese Yen to the effects of carry trades. In carry trades, ... (full story)