Forex Flash: Yen may see sharp spike if just ¥5tn on extra easing

Forex Flash: Yen may see sharp spike if just ¥5tn on extra easing

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Forex Flash: Yen may see sharp spike if just 5tn on extra easing - Westpac

FITITOL--> FXstreet.com (Barcelona) - Today's BoJ meeting really is a huge binary event and failure to act to the tune of about ¥5tn will see a sharp move lower in USD/JPY, while a number closer to ¥10tn or above will see a sharp move higher, notes the FX Team at Westpac.

"With Golden Week holidays all but upon us, Japan inc is likely to use any strength in USD/JPY as an opportunity to sell in our view. We would have to agree with that. With Japan out next week and a lot more focus on European political issues next week, we shift our bias for USD/JPY back to a sell though would view this as a ‘sell on volatility’ over the data" the Team adds.