USD/JPY
The Ministry of Finance of Japan and the BOJ believe that the too cheapen yen (at least in the last 20 years) increases the risk of a new financial crisis in the region. If the yen continues to fall against the dollar. then China will see this as an unfair competitive advantage and will intensify efforts to weaken the yuan. So far, the priority of purchases remains, but before the BOJ meeting, attempts to correct to the zone of 130 and below are possible.
The Ministry of Finance of Japan and the BOJ believe that the too cheapen yen (at least in the last 20 years) increases the risk of a new financial crisis in the region. If the yen continues to fall against the dollar. then China will see this as an unfair competitive advantage and will intensify efforts to weaken the yuan. So far, the priority of purchases remains, but before the BOJ meeting, attempts to correct to the zone of 130 and below are possible.
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