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2026-09-18 11:38:09
[Wells Fargo: Two vetoes from the Bank of Japan are not a problem; USD/JPY expected to be anchored at 155-160] (1) Chidu Narayanan, Chief Strategist for Asia Pacific at Wells Fargo in Singapore, said that the two vetoes from the Bank of Japan today were not unexpected, and the two members are likely to maintain a dovish stance throughout the remainder of the rate hike cycle; he believes this will not have a significant impact on the market. (2) Regarding the yen, the Bank of Japan's steady hawkish shift, the threat of intervention from the Ministry of Finance, and the potential rebalancing of pension funds are expected to jointly anchor USD/JPY in the 155-160 range. (3) In the current environment of rising global energy prices and the Fed's small rate hike cycle, a significant appreciation of the yen would require the Bank of Japan to take far more aggressive actions than it is now, but the bank suspects that the Bank of Japan has no such intention. (4) The range-bound movement of USD/JPY is Wells Fargo's basic expectation for the next few months.
