The JPY was bullish final 12 months, attracting bids because the uncertainty remained excessive in monetary markets, benefiting the secure haven currencies just like the JPY and the CHF. However, this 12 months the JPY turned bearish, sending USD/JPY surging larger, as most economies are increasing at a fantastic tempo.
USD/JPY elevated round 9 cents from the underside, but it surely has been consolidating round 109, discovering help on the 50 SMA (yellow) on the H4 chart, ready for the Financial institution of Japan assembly earlier in the present day. The BOJ left the coverage unchanged, so USD/JPY is resuming the bullish momentum once more now.
BOJ Governor, Haruhiko Kuroda Press Convention
- It’s acceptable to proceed with present coverage framework
- New curiosity scheme to ease the influence of decreasing charges additional
- The speed ranges on the scheme might be adjusted
- Precedence is to maintain total yield curve low amid the virus disaster
- ETF purchases are efficient in occasions of extreme instability
- We didn’t broaden the yields band with in the present day’s determination
- BOJ merely clarified its view on the yields band
- Some yield fluctuations are optimistic for market operate
- Doesn’t intend to scale back ETF purchases or exit from stimulus coverage
- ETF purchases aren’t undermining inventory market operate
- If we deepen detrimental charges, we are going to tweak curiosity primarily based on the brand new scheme
- Not fascinated with widening JGB yields band for now
- Too early to debate exit from stimulus coverage
- BOJ selected to trace Topix for ETF purchases to scale back influence on particular person shares
- Kuroda says that there isn’t a contradiction with Amamiya’s feedback (which prompt that the BOJ ought to broaden the yields band) on yields. So, I assume we have now the reply as to why Kuroda is making these feedback.
It’s attention-grabbing to see him lead with the introduction of the brand new curiosity scheme, which is just about him making an attempt to indicate that they’re nonetheless on the dovish facet of issues.