BoJ seen forecasting FY25 CPI to rise 1.6-1.9%

Reuters reported, quoting the Jiji news agency, that the ´´Bank of Japan is considering a projection for consumer prices for the 2025 fiscal year to rise 1.6-1.9% in a move seen to keep market players from betting on the central bank to head to exit from stimulus.´´

Such a forecast diminishes the prospects of a tweak to the yield curve control policy that is in place to sustainably achieve the 2% inflation target whereby Kazuo Ueda has predicted the CPI growth will slow below 2% around the middle of this fiscal year as base effects fade away.

USD/JPY update

• USD/JPY Price Analysis: Bulls stay front side of trend and above the 134 figure but correction eyed

With the bulls still in control, there are prospects of a continuation toward the greyed price imbalance area in the 135s, however, if bears move in, there will be risks of a test of the trendline support that guards the 132.50s:

The above chart illustrates a theoretical bearish schematic.