The chances of a Bank of Japan hike in July are very much underpriced, ING’s FX analyst Chris Turner notes.
USD/JPY may meet good selling interest around 145 area
“The market attaches around a 10% probability to such an outcome. Last night’s release of April CPI data should worry the BoJ enough to prompt a 25bp hike in our opinion. And with the dollar staying relatively weak, USD/JPY will likely meet good selling interest should it make it back to the 145 area.”