News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.82% FTSE 100: 0.28% Germany 30: 0.19% US 500: 0.18% Wall Street: -0.02% View the performance of all markets via
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here:
  • USD/JPY IG Client Sentiment: Our data shows traders are now net-long USD/JPY for the first time since Jul 20, 2021 09:00 GMT when USD/JPY traded near 109.86. A contrarian view of crowd sentiment points to USD/JPY weakness.
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Gold Prices Climb Ahead of FOMC as Traders Anticipate Status Quo, USD Falls
  • 🇮🇹 Business Confidence (JUL) Actual: 115.7 Expected: 115.4 Previous: 114.8
  • 🇮🇹 Consumer Confidence (JUL) Actual: 116.6 Expected: 115.5 Previous: 115.1
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.24%, while traders in Wall Street are at opposite extremes with 73.69%. See the summary chart below and full details and charts on DailyFX:
  • Heads Up:🇮🇹 Business Confidence (JUL) due at 08:00 GMT (15min) Expected: 115.4 Previous: 114.8
  • Heads Up:🇮🇹 Consumer Confidence (JUL) due at 08:00 GMT (15min) Expected: 115.5 Previous: 115.1
Yen Ticks Up as Cautious BoJ Stands Pat

Yen Ticks Up as Cautious BoJ Stands Pat

David Cottle, Analyst

Talking Points:

  • The Japanese Yen rose after the BOJ left its monetary policy settings alone
  • This was a largely expected outcome, with a few minor tweaks to the central bank’s projections the only deviation
  • However, the US Dollar was already under a bit of pressure

The Japanese Yen strengthened further against an already shaky US Dollar after the Bank of Japan stuck to the markets’ script and left its policy settings alone.

That means that the short-term interest rate target remains -0.1%, and the ten-year Japanese Government Bond Yield Target stays at 0%. The BOJ’s pledge to buy JGBs at the current pace so that its holdings increase by ¥80 trillion ($710 billion) annually also remained in place.

However, its loan program aimed at boosting lending and supporting growth industries was extended for a year. Turning to its projections, core Consumer Price Index forecasts remained broadly steady, with a slight downturn for fiscal 2016/17. Core CPI is now seen at -0.2%, below November’s -0.1% projection.

The BOJ still predicts a 1.5% core CPI average in fiscal 2017/18 and a 1.7% average in fiscal 2018/19. The central bank also still thinks inflation will reach 2% in 2018, although overseas uncertainties – US policy, Brexit, China, take your pick – mean there are downside risks.

In its Quarterly Report, the BOJ said that the economy continues its “moderate” recovery, and is expected to expand accordingly in the months ahead. It acknowledged however that forecast risks lie to the downside and that current policy settings – “Qualitative and Quantitative Easing” – will be needed to stably achieve 2% inflation.

All up, it’s not clear that this should be a big Yen-positive all on its own, especially given the BOJ’s consolidating position as a rather secondary driver for the currency. That said, the US Dollar had already come under pressure in Tuesday’s Asia/Pacific trading session on the news that US President Donald Trump had sacked the acting Attorney General Sally Yates, who had questioned the legality of his immigration ban.

The Yen had also been underpinned by data released earlier showing that household spending beat forecasts in December. USD/JPY fell to 113.24 from 113.54 just before the BOJ made its call.

Carrying on down. USD/JPY

Yen Ticks Up as Cautious BoJ Stands Pat

Chart Compiled Using TradingView

The currency may hunker down now ahead of the post-policy-decision press conference from BOJ Governor Haruhiko Kuroda, which is coming up at 06:30 GMT.

Can we be a month into 2017 already? We certainly can. How are DailyFX analysts’ first-quarter forecasts bearing up?

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.