BOJ Tightening, Will USDJPY Drop?

Last night, Powell spoke again, expressing continued concern about inflation. Many people seem to think the Fed might ease policy slower than expected. Personally, I think that might be true, especially if Core CPI numbers remain high like this.

But what's interesting is that the BOJ has been signaling more and more clearly that it will start normalizing policy. As we've seen, $ZARJPY has started to fluctuate, but it's not very clear yet. I think if the BOJ starts to signal serious tightening, we might see some pressure on $USDJPY in the next period. We still need to closely monitor statements from the BOJ. I think we might see trading opportunities for JPY-related pairs again, but we'll have to wait for clearer confirmation of the signals.