USD/JPY: BOJ TO REACT ONLY ONCE 145 IS NEAR – CREDIT SUISSE

Economists at Credit Suisse analyze JPY outlook ahead of the Bank of Japan (BoJ) meeting next week.

Highly unlikely the BoJ would think about signaling a policy change 

Disappointing Japanese wage data are reducing risks of a hawkish turn in BoJ policy at the upcoming 15-16 Jun, with negative implications for JPY.

We suspect the BoJ will be content to see this unfold for now rather than try to signal a tighter policy stance.

Only if USD/JPY drives higher towards our near-term 145 target would we expect a reaction. But even then, it is first likely to be verbal or actual FX intervention rather than through signalling a monetary policy shift.