THE TAKEAWAY:Bank of Japan leaves monetary policy unchanged > Market eyes Governor’s Kuroda’s speech to weigh expectations > USD/JPY Higher
The Japanese Yen traded slightly higher against the US Dollar after the Bank of Japan decided to maintain its current pace of monetary easing. The central bank aims to expand the country’s monetary base by 60 to 70 trillion Yen annually with a target base of 270 trillion in 2014. The BoJ also saw modest improvements in the economy and a gradual rise in the prices, but it maintained its support for quantitative easing until inflation reaches a stable two percent.
Shortly after the statement, USD/JPY recovered and continued higher. Looking forward, investors will likely weigh their expectations for BoJ policy on Governor Kuroda’s follow-up speech at 6:30 GMT.
USD/JPY (5-Minute Chart)
Source: FXCM Marketscope
Jimmy Yang, DailyFX Research Team