
USD/JPY consolidated after the recent decline. Markets have nearly priced in a 25bp hike (92% probability) at the upcoming MPC (Friday). USD/JPY was last seen trading at 155.70, OCBC’s FX analysts Frances Cheung and Christopher Wong note.
Worry of BoJ dovish hike
“From a markets point of view, the risk is a dovish hike as this may suggest that USDJPY’s move lower may be more constrained. We remain of the view that BoJ has room to normalize policy as economic data (inflation wage growth) continues to support. Fast Retailing (Uniqlo) announced it will raise starting pay for new salary
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