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24 Apr 2013
Forex Flash: No additional Japanese easing expected on Friday - Nomura
FXstreet.com (Barcelona) - Nomura Strategist Yujiro Goto is not expecting any additional easing at the meeting on Friday.
He notes that Mr Kuroda has emphasized that the BoJ has taken all measures necessary to achieve the 2% inflation target for now and financial market conditions have improved broadly since the meeting on April 4th. Thus, he thinks that the BoJ will stay on the sidelines in the near future to evaluate the efficiency of the latest policy measures. He writes, “Expectations for additional easing are limited and thus, we do not expect the decision to leave policy unchanged to send USDJPY much lower. If USDJPY reacts to the decision significantly, we would recommend buying on dips.”
He notes that Mr Kuroda has emphasized that the BoJ has taken all measures necessary to achieve the 2% inflation target for now and financial market conditions have improved broadly since the meeting on April 4th. Thus, he thinks that the BoJ will stay on the sidelines in the near future to evaluate the efficiency of the latest policy measures. He writes, “Expectations for additional easing are limited and thus, we do not expect the decision to leave policy unchanged to send USDJPY much lower. If USDJPY reacts to the decision significantly, we would recommend buying on dips.”