BoJ hike expectations support yen against dollar, MUFG says
MUFG strategists note that Japanese bond yields are climbing even after weak GDP data, with markets focused on further Bank of Japan rate hikes and supporting the yen versus the dollar.
USDJPY
Japanese government bond yields are rising despite a weaker-than-expected GDP print, according to MUFG strategists Derek Halpenny and Lee Hardman.
They say markets are focused on the prospects for further Bank of Japan rate hikes rather than the soft growth data. That shift in focus is supporting the Japanese yen against the US dollar.
The move in JGB yields suggests investors are positioning for tighter BoJ policy, which underpins the yen's strength in the near term.
Source: FXStreet Forex News