The USD/JPY pair is trading upward in response to the Bank of Japan's decision to leave the key parameters of the monetary policy in place.
On Friday, the Japanese Yen managed to strengthen in tandem with the US dollar. The current quote in the USD/JPY pair is 120.45. However, it is likely that the drawdown of the currency pair is a temporary phenomenon.
Today, the Bank of Japan decided to maintain the main parameters of monetary policy unchanged and left the rate at zero. The incentive program is kept at 80 trillion yen a year. Apparently, many of the market participants expected at least a softer tone from the regulator, not to mention the allusion to the softening of the monetary policy. But all remained in its place.
In the comments the BoJ said that the regulator still has no apparent restrictions on the use of fiscal instruments, the credibility of the Bank of Japan is high and not under any risk. The following is interesting: the regulator has lowered the economic growth forecast for the current year due to sluggish and inefficient exports. According to the BoJ, the incentive program is bearing fruit, and the goal for inflation in global terms remains the same - 2%. At the moment the consumer price index, excluding the cost of fresh food and energy, is gaining 1.2%. This is a good result, but there is work to do.
Today data on inflation in Japan was published. The national index remained at zero in September, and is below the figure for the same period a year earlier. Core inflation fell by 0.1% with the forecast of a contraction of 0.2%.
RoboForex Analytical Department
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