
An improvement in Japanese manufacturing sentiment could strengthen the Bank of Japan’s (BoJ) confidence that inflation is holding steady near 2%. ING’s Chris Turner attributes the brighter mood to demand for semiconductors and data centres, robust corporate profits and solid wages.
"All of the above can feed into the Bank of Japan's view that inflation is now stable at 2.00% and its accommodative monetary policy can be reined in."
"The broadly strong dollar means that USD/JPY could easily push through resistance at 159, but we increasingly think investors will be looking to acquire cheap yen should USD/JPY push above 160 again."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)