Bank of Japan remains stubborn, USDJPY skyrockets.
“Bank of Japan to monitor currency market moves that could have significant impact on their economy and import prices.”
Bank of Japan stood firm against aggressive policy tightening, deepening the divergence between Japan and its peers. After ending their two-day policy meeting, the central bank maintained its target rate at -0.10% and offered to purchase unlimited amount of 10-year bonds. BoJ caught in a dilemma as Japan’s inflation is well below its Western peers. However, an extended period of loose policy triggered rapid depreciation of Japanese Yen, triggering an up rise in fuel and raw material price which are heavily imported by the economy.
Quick recap on USDJPY
The pair recuperated some losses after a rebound from minor support around 132.20.
USDJPY Weekly Technical Analysis
In weekly perspective, USDJPY remains bullish tilted as the pair thrust further up after closing above 130.92.
USDJPY Daily Technical Analysis
The pair is expected to retest at 135.53, which was failed to be overtaken during early of June.
ORDER: BUY STOP
STOP LOSS: 133.20
Target 1: 138.20
Target 2: 140.00
ZFX Analyst’s Comment
We maintained bullish biasness towards USDJPY following Bank of Japan’s latest decision. The pair is expected to push further up as policy divergence deepens with soaring inflation in the US.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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