USD/JPY is consolidating around 144.50 – DBS

JPY held on to earlier gains, with USD/JPY consolidating at mid-144, notes DBS FX & Credit Strategist Chang Wei Liang.

The BOJ will continue to normalize monetary policy

“Markets will be closely watching the Tokyo CPI tomorrow as BOJ Governor Ueda expressed that further rate hikes could occur if the Japanese economy moves in line with forecasts. Meanwhile, equity risks and tensions in the Middle East could keep the JPY supported on safe-haven offers.”

“On the political front, former Foreign and Defense Minister Kono Taro announced his plans to run in the September 27 LDP leadership election and said it is appropriate for the BOJ to continue normalizing monetary policy as long as inflation remains in line with the provisions of the Bank. expectations. He also said it’s time to talk about how to balance the budget as interest rates rise.