On Monday (May 8) in Asian trading, the latest price of USD/JPY was 135.03, and the opening price was 134.81. Japan’s endogenous inflation momentum is recovering, and institutional analysis predicts that Japan’s core CPI will remain at around 2% year-on-year this year. Although Kazuo Ueda said that he will still maintain YCC, the agency believes that the benefits of the Bank of Japan‘s maintenance of YCC have weakened and the disadvantages have become more and more obvious.
It is expected that the Bank of Japan will further revise its forward guidance as soon as June or July this year, and it is still possible to withdraw from YCC within this year. In terms of direct impact, institutional analysis predicts that after the YCC is completely withdrawn, the potential center of the 10-year Japanese bond yield will only be slightly higher than 1%, and the USD/JPY will directly drop by about 327 points, and Japanese financial institutions will only A direct loss of about 0.6% of the asset-side value.
USD/JPY closed up 0.36% at 134.76 on Friday.
