- The Bank of Japan retains plan for current pace of monetary easing at 60-70T Yen per year
- BoJ status quo likely compels investors to look towards fiscal developments
- USD/JPY relatively unchanged but remains at critical levels
The Japanese Yen remained relatively unchanged 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 per year to target a 270 trillion base by 2014. The BoJ also echoed its confidence on the economy’s outlook and expects Japan’s recovery to continue. However, the reserve bank did repeat its support for quantitative easing until its target two percent inflation is reached.
Although the currency did not respond in a clear direction, the pair faces volatility as it sits at critical levels. Developments on Japan’s fiscal front as well as key U.S. events could offer investors guidance on risk trends.
USD/JPY (5-Minute Chart)
Source: FXCM Marketscope
Jimmy Yang, DailyFX Research Team