USD/JPY could quickly fall below 130 – Commerzbank

A glance at the Yen over the next few days might be interesting. Antje Praefcke, FX Analyst at Commerzbank, expects the USD/JPY pair to dive below the 130 level.

How far does the BoJ go?

“Next week's BoJ meeting will be exciting. After the surprise widening of the yield target in December, the big question is how far the BoJ will go. Perhaps next Wednesday we will get a first hint. Although it is likely to get really exciting starting in April, when the new Governor will take over, whose nomination is still pending.”

“If there are already signs next week that the BoJ really is moving further away from its ultra-expansionary stance, I would expect USD/JPY to quickly fall below 130.”