USD/JPY could rise to the 145 level – SocGen

The Bank of Japan (BoJ) maintained its current monetary policy at today’s policy board meeting. Economists at Société Générale discuss JPY outlook.

July YCC tweak will depend on US rates

As we expected, the BoJ maintained its current monetary policy at today’s policy board meeting. 

In view of Ueda’s comments during the press conference, we still think that the BoJ could widen the range of fluctuation permitted on 10-year JGB yields from ±50bp to ±100 bps at its July meeting, if there is another US rate hike in July, 10-year JGB yields could once again stick at 0.5% and the USD/JPY rate could rise to 145.