USDJPY is preparing a new attack on the highs. The Japanese Yen is slowly falling against the USD. The current quote for the instrument is 136.16. The statistics published by Japan in the morning showed that the Leading Economic Index dropped to 101.4 points in May after being 102.8 points the month before. The Coincident Index went from 96.6 points in April to 95.5 points in May.
The Japanese media reported today that the Bank of Japan might revise its GDP forecasts for 2022 downwards. Jiji experts believe that the regulator is also willing to revise its inflation forecast as well. The current target for inflation is 2% and it’s rather difficult to imagine that it might be high. However, everything is possible.
The Bank of Japan is highly likely to refrain from influencing the Yen rate in any way. This year, the Japanese currency has already lost almost 15% against the “greenback” and the sky seems to be the limit. However, there is no point in interventions: as long as the regulator’s monetary policy remains ultrasoft, the rate difference may count against the Yen. It’s interesting that the “greenback” is not as aggressive against the Yen as against other traded currencies. Perhaps, it’s because devaluation of the Japanese currency started a long time ago and it’s not quite clear when it might end. If so, why hurry?