Wells Fargo suggests selling the yen against the dollar before the Bank of Japan makes a decision, as it is unlikely to meet or even exceed hawkish market expectations. “We still doubt that the Bank of Japan can be more hawkish than the aggressive austerity path already implied by the market,” wrote Chidu Narayanan, head of macroeconomic strategy in Asia Pacific, in a report. Market expectations are implied that interest rates will be raised by 25 basis points every second meeting until July 2027. “The threshold for the Bank of Japan to meet these expectations is very high, and it is even more difficult to surpass them.” It is recommended to buy USD/JPY. The target level is 159, and the stop loss level is 153.40.

Wells Fargo suggests selling the yen against the dollar before the Bank of Japan makes a decision, as it is unlikely to meet or even exceed hawkish market expectations. “We still doubt that the Bank of Japan can be more hawkish than the aggressive austerity path already implied by the market,” wrote Chidu Narayanan, head of macroeconomic strategy in Asia Pacific, in a report. Market expectations are implied that interest rates will be raised by 25 basis points every second meeting until July 2027. “The threshold for the Bank of Japan to meet these expectations is very high, and it is even more difficult to surpass them.” It is recommended to buy USD/JPY. The target level is 159, and the stop loss level is 153.40.