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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/Cxt86jl28N
  • The Japanese Yen fell for a third consecutive week with price testing resistance into June open. Here are the levels that matter on the $USDJPY weekly technical chart. Get your #currencies market update from @MBForex here: https://t.co/1QPXP0g7Ew https://t.co/WUtXHoRoQX
  • $USDZAR: A rally from here could be an important tell as to whether the level seen as support previously (17.76) will turn into a point of resistance for sellers to lean against. Get your $USDZAR technical analysis from @PaulRobinsonFX here:https://t.co/TNsQ4JJu6E https://t.co/I4yCjs2ja0
  • The US dollar continued to sell-off this week and the greenback’s future will be decided by commentary from the White House and not the Federal Reserve over the coming days and weeks. Get your #currencies market update from @nickcawley1 here: https://t.co/lpHneO3s2h https://t.co/bZ5klohLNd
  • #Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/VAYy9FGHcQ
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/YvoHlUsdVr
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/X15k6b4ZyB
  • The month of May saw equities rise across the board. The #Dow Jones and #DAX 30 will look to hold above nearby support while the #Nasdaq 100 may look to attack all-time highs. Get your #equities market update from @PeterHanksFX here: https://t.co/dQxkG68R0I https://t.co/cgfcOs14qG
  • There is a dramatic departure between yield curve pricing for a recession and other measures of near-term growth; the Q2’20 Atlanta Fed GDPNow is extremely alarming.Get your market update from @CVecchioFX here: https://t.co/eMd3T8EwDO https://t.co/56oUP6we9U
  • The #DAX has now closed the gap from the beginning of March with the index breaking above 61.8% fib at 11592. Get your DAX market update from @JMcQueenFX here: https://t.co/wr67nkxc8z https://t.co/CkxPZn1v3t
Japanese Yen Gains As BOJ Stands Pat, Maintains All Policy Settings

Japanese Yen Gains As BOJ Stands Pat, Maintains All Policy Settings

2018-01-23 04:00:00
David Cottle, Analyst
Share:

Talking Points:

  • The Bank of Japan left all its policy settings alone at its first meeting of 2018
  • Bond buys remain steady at an annual JPY80 trillion
  • USD/JPY ticked lower but didn’t get far

Get trading tips and join out analysts for live coverage of all the major economic data at the DailyFX Webinars

The Japanese Yen rose a little against the US Dollar after the Bank of Japan did as was universally expected and maintained all its monetary settings.

That left the key short-term interest rate at minus 0.1%, the ten-year Japanese government bond yield at 0% and the annualized pace of bond purchases steady at around JPY 80 trillion (US$721 billion). The Bank of Japan kept its forecast for core consumer price inflation for the 2017/18 fiscal year unchanged at 0.8%.

It expects the domestic economy to continue to expand modesty and said that it would stick with current ‘qualitative and quantitative’ monetary easing until consumer price inflation sustainably hits 2%. The accompanying quarterly report forecast that this would happen around fiscal 2019/20.

As usual, this makes it look as though massive easing will be with us for some time yet. At last, look core inflation was at just 0.9%. That was a two-year high, but 2% remains a long way away. Earlier this year a very modest cut in the BoJ’s regular bond purchases had markets on tenterhooks for some stimulus reduction, but these hopes seem to have been extremely premature.

The BoJ feels that momentum towards that 2% target still exists, but policymakers noted with disarming honesty that this momentum lacks strength. BoJ Governor Haruhiko Kuroda will speak later on the decision.

USD/JPY skidded a little on the data but was already creeping back up within minutes. A stronger-Yen reaction was not easily explicable by the decision which – if anything – might have been expected to weaken it. However, the BoJ’s assessment that inflation was likely to be steady, rather than the weakening it saw last time, could be behind the fall.

Japanese Yen Gains As BOJ Stands Pat, Maintains All Policy Settings

The Japanese Yen remains in the ascendant against the US Dollar on its daily chart. This seems largely a function of US Dollar weakness, itself a product of Euro strength and Washington’s turbulent politics.

Japanese Yen Gains As BOJ Stands Pat, Maintains All Policy Settings

USD/JPY is close to the top of a downtrend channel, which has persisted since January 9. Bulls will need to recapture last week’s highs in the 111.50 area as a first step in any more durable recovery. Recent lows in the 110.06 region lie in wait should they fail.

--- 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.

DISCLOSURES

News & Analysis at your fingertips.