USD/JPY to retest 141.70 low – DBS

USD/JPY fell 2.2% to 144.37 last week. Bank of Japan Governor Kazuo Ueda backed the decision to keep key rates on hold, notes DBS FX senior strategist Philip Wee.

Ueda supports the decision to keep hiking fees

“USD/JPY fell 2.2% to 144.37 last week, opening the door to a retest of the 141.70 low in early August.”

“At a special parliamentary hearing on August 23, Bank of Japan Governor Kazuo Ueda backed the decision to keep raising rates if the central bank’s average economic forecasts were met or exceeded.”

“Ueda attributed the brief market volatility from July 11 to August 5 to growing fears of a U.S. recession due to the Fed’s interest rate cut on rising unemployment, not the BOJ’s rate hike.”