In the Asian session on Tuesday (April 4), the US dollar rose against the yen, temporarily reporting 132.69, an increase of 0.24%. Ulrich Leuchtmann analyzes the next Bank of Japan interest rate decision. Leuchtmann believes it would be desirable if the BOJ could communicate a possible policy reversal very gradually.
All BOJ watchers are likely to weigh very carefully every word from the new BOJ officials and try to read from it whether we will see a change in direction. This makes “progressive communication” nearly impossible. He believes that for all market participants with yen exposure, the situation will become “volatile and volatile”, especially around the Bank of Japan meeting. The next interest rate decision will be held at the end of this month, which is also the first meeting of the Bank of Japan after the change of leadership, so there is still time to prepare for the yen to rise.
