VOT Research Desk
Significant USDJPY easing has occurred. Of course, the Japanese monetary policy is not to blame for it.
The USDJPY weakened in accordance with the broader USD index, limiting the Yen’s ability to gain much ground versus the Dollar.
The MOF has therefore been extraordinarily fortunate, according to Commerzbank economists. Instead of JPY gains, USDJPY eased as a result of USD weakness. This pattern could stick around. I had previously only anticipated a decline in the USD starting in Q1 2012.
Right now, it appears more as though it was going to catch on. The MOF would have been really fortunate in that scenario.
On the other hand, anyone who disagrees with my USD viewpoint and anticipates a fresh phase of USD strength is likely to regard USDJPY as the perfect objective.
