Forex Flash: JPY short selling ahead of April 5 BoJ meeting – BNZ

FXstreet.com (Barcelona) - A bout of JPY short covering ahead of the 5 April BoJ meeting has interrupted the JPY uptrend that has been in play since November last year. The JPY continues to be weighed down by expectations of ‘bold easing’ by the new look Bank of Japan. According to the BNZ Research Team, “We expect the staunch ambitions of the BoJ and Japanese government to achieve the new 2% inflation target will keep the JPY on a weakening trend this year. Still, the bulk of the move is behind us.”

Moreover, “Japan’s external accounts are deteriorating rapidly and we expect this trend to gather pace through 2013, adding to the headwinds confronting the JPY.” they add.