Usdjpy Moves Higher Rabobank

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Usdjpy Moves Higher Rabobank

Usd/Jpy Moves Higher As Boj Disappoints

The markets were running under the assumption that the BoJ's next rate hike would happen before October. However, the hopes of a rate cut were crushed as the BoJ governor said the central bank is behind the curve on the policy rate.

In addition, the BoJ also made it clear that the fog over the trade outlook will not be lifting anytime soon. In a sense, the BoJ has highlighted how much uncertainty they are facing.

Us Dollar Weakness Has Faded

The central bank has also revised its estimate for CPI inflation as it expected an uptick in the index. In addition, the bank has also warned that growth in Japan will remain moderate. All of this has sent the USD/JPY higher and is now seen trading near the 150.00 handle.

Also, Trump's tariff initially had a negative effect on the US Dollar, but that has also faded now. That can be confirmed by looking at the USD/JPY, which is trading in the positive territory. That's why the US Dollar has become the best performer against other currencies this month.

Overall, it seems that the US Dollar's weakness has ended in the medium term. With that in mind, Rabobank has set a target of 148.00 for the pair.

According to Rabobank, the Bank of Japan is highly likely to raise the rates during the rest of 2025. So, the analysts at Rabobank have set a 3-month target for the USD/JPY pair at 145.00.

In simple words, Rabobank believes that the Japanese Yen will strengthen once again during the next few months. This thesis is based on the assumption that the BoJ will raise the rates despite all the recent comments.

But what happens if the BoJ doesn't go through with the rate hikes? In that case, the USD/JPY pair will rise and will likely reach a high of 155.00 in the next few months.

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