The bull's control is still strong for $USDJPY. See how this will affect your Forex trading
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, according to a former Bank of Japan official seen as a potential candidate for the position of deputy governor. “This is not the time to raise interest rates dramatically, so there is a limit to what the Bank of Japan can do now,” said Yuri Okina, a former official and head of the Japan Research Institute, in an interview.
She added that if wage growth exceeds inflation amid a positive economic cycle that would provide an adequate justification for canceling the stimulus, but it is not clear that these conditions will be met soon. "I'm not sure we're on a path toward a virtuous economic cycle," Okina added. She said there were "significant downside risks" to the economy, including a global slowdown as central banks abroad raise interest rates at an accelerated pace to cool inflation.
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