USD/JPY has garnered strong support from a number of factors today including the support from the IMF for Japan's low interest rates. Also supporting USD/JPY were the Feb machinery orders released in Japan last night which showed a decline of 5.2%, further supporting expectations that Japanese rates will remain steady through at least August.
A survey released last night from Japan's EPA shows that many of the Japanese economists surveyed, nine out of 34, do not expect to the BOJ to lift rates until September, though eight forecast an August rise and seven forecast a rate hike in October. The view that the rates will remain steady through the next four months continues to favor JPY selling on carry trades. USD/JPY is currently at 119.36 after pulling back from 119.53 highs this morning.
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