USD/JPY: Deutsche Bank says bearish risk remains strong despite BoJ

Deutsche Bank believes that the risk remains on the downside:

"Investors were generally expecting a rise of the yen if the BoJ did not relax its monetary policy and a slight dip followed by a rise in the event of monetary easing. As it turns out, the USD/JPY went up 102 temporarily in anticipation of monetary easing. The BoJ decision helped extend things some time before leaving the feeling that it had reached the end of what it can do. This is not likely to strengthen the feeling that the BoJ can reach its 2% inflation target.

We do not at all believe that the measures announced will allow the USD/JPY to sustainably rise.

We believe the downside risk remains high for the USD/JPY unless the US economy soon regains strength." says the Deutsche Bank.