As disappointment with the Bank of Japan’s rate-hike stance spreads, the yen is increasingly likely to trade erratically over the next week. The decline in trading liquidity as Silver Week begins is also expected to have an impact.
The yen is expected to trade erratically over the next week, with the risk of a further decline increasing. The stated reason is that investors were disappointed that the Bank of Japan did not provide clearer guidance on the pace of future rate hikes.
As the extended Silver Week holiday period begins, the resulting decline in trading liquidity could temporarily intensify market volatility. This is a summary for members and does not provide specific figures or details of the outlook.