Bofa Suggest to Go Short on USD/JPY as They Forecast Japan’s Inflation Rates in 2023 Will Remain High

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Economists at Bank of America Global Research have noted that the policies of the Bank of Japan are neither conventional nor sustainable in the long run. Their inflation forecast for Japan in the year 2023, is 3% whereas the market consensus is just 1.9%. So, they are expecting the bearish trend to continue for the pair until and unless BOJ comes up with strong economic policies for tackling the inflation.

The economists at BofA clearly stated that “We would sell USD/JPY rallies”. On the other hand, the pair had reached 130.89 on Monday but corrected 130.15 on Tuesday. This correction is likely due to a recovery in the risk taking capacity of investors. The 21-EMA is still providing support to the US Dollar.

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