Japanese Yen Looks to Kuroda Conference after Status Quo BoJ
- Bank of Japan leaves all monetary policy settings alone during 2017’s last meeting
- Focus now shifts to BoJ’s Governor Kuroda press conference later today at 0630 GMT
- The Japanese Yen is under a little pressure against the US Dollar on the daily chart
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The Japanese Yen didn’t show much enthusiasm on Thursday as the Bank of Japan left all monetary settings alone following its monthly policy meeting, as was universally expected.
That left the key short-term policy rate at -0.1%, the ten-year Japanese Government Bond yield target at zero
The BoJ remains publicly committed to this extraordinary accommodation until consumer price inflation sustainably reaches 2%. At least look it was running at just 0.2%, with the variant which strips out volatile food-price effects hitting 0.8%. Logically this suggests that the Japanese monetary taps will remain wide open for years to come, although there have been reports that disquiet with the long-term effects of this policy could force a rethink in 2018. These remain in the realms of speculation, however.
Of course focus now shifts to BoJ Governor Kuroda’s press conference, which is coming up at 0630 GMT
The Japanese Yen is under a little pressure against the US Dollar on the USD/JPY daily chart. The pair is in an uptrend which has been in place since the end of November, fundamentally underpinned by US tac reform’s long passage through congress and the widening policy gap between a tightening Federal Reserve and a BoJ still determined to keep the taps open. There’ve also been reasonably solid data from many major economies, which gives Japanese investors more tempting investment options than they can often get at home.
However, USD/JPY remains short of its recent highs, which were set in early November. They look set to provide stiff resistance as liquidity and participation inevitably dry up heading into the holiday season.
--- 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.