Gloomy Times Ahead for Japan and USD/JPY from “Mr JPY”
Skerdian Meta•Friday, November 1, 2019•1 min read
Eisuke Sakakibara, the former Japanese vice finance minister, who is also known as ‘Mr. Yen’, commented on inflation in Japan, the monetary policy from the Bank of Japan, as well as on the Yen. He sees inflation remaining weak for a long time and USD/JPY heading towards 100. Here are some of his main comments:
- 2% inflation is a target Japan can never reach
- Right now is a period of disinflation everywhere
- Although Kuroda talks about 2% target, he does not truly believe in it
- USD/JPY should remain around the range of 105 to 110
- Eventually it will head towards 100 as uncertainty still surrounds the global economy
- Says that current growth rate of Japanese economy is sufficient
He is right about inflation. While many central bankers, especially the BOJ, try to keep a straight face, we know inflation is not going anywhere anytime soon. He thinks that while USD/JPY should remain in the range between 105 and 110, it will head towards 100 at some point, which is the threshold for the BOJ, as he has mentioned earlier. If USD/JPY falls below 100, then the BOJ will be forced to act, in my opinion.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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