Barclays on where to for the yen on the BoJ statement due today, Wednesday 18 January 2023

BoJ meeting poses further upside risks to the JPY.

  • If the BoJ decides on further YCC adjustment, we estimate that the Yen could appreciate by as much as 5%
  • Even if inaction leads to a knee-jerk USD/JPY rally, expectations for revision will likely remain intact and USD/JPY could stay on a downtrend, especially amid broad USD weakness

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Ahead today is the Bank of Japan policy statement. Due in the 0230 to 0330 GMT time window (2130 – 2230 US ET).

Previews: