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Goldman Sachs about BOJ easing and implication for USD/JPY
https://fxspecialist.co/goldman-sachs-boj-will-ease-and-usdjpy-above-125/
The Friday will be held on the decision of the Bank of Japan’s monetary policy, which will allow to verify the correctness of our long-time forecasts of the Japanese team of economists. For quite a long period of time they expect the results of the meeting of October 30 will be announced the adoption of new stimulus measures, which will lead to a subsequent increase in the usd / jpy above 125. On the eve of this meeting, the pair is trading below the levels of the summer, indicating that in the quotations taken into account the low probability of such an event, especially given the small volume of speculative positions. In line with our baseline scenario, on Friday the Bank of Japan will announce:
– Extension of the asset purchase program;
– an increase of its annual volume to Y80 trillion to Y90 trillion, and
– increasing the volume purchase program ETF to Y3 to Y5 trillion trillion.
According to our calculations, the increase in the asset purchase program at Y10 trillion will match the growth of dollar / yen by about 4%, ie up to Y125
https://fxspecialist.co/goldman-sachs-boj-will-ease-and-usdjpy-above-125/
The Friday will be held on the decision of the Bank of Japan’s monetary policy, which will allow to verify the correctness of our long-time forecasts of the Japanese team of economists. For quite a long period of time they expect the results of the meeting of October 30 will be announced the adoption of new stimulus measures, which will lead to a subsequent increase in the usd / jpy above 125. On the eve of this meeting, the pair is trading below the levels of the summer, indicating that in the quotations taken into account the low probability of such an event, especially given the small volume of speculative positions. In line with our baseline scenario, on Friday the Bank of Japan will announce:
– Extension of the asset purchase program;
– an increase of its annual volume to Y80 trillion to Y90 trillion, and
– increasing the volume purchase program ETF to Y3 to Y5 trillion trillion.
According to our calculations, the increase in the asset purchase program at Y10 trillion will match the growth of dollar / yen by about 4%, ie up to Y125
