The yen is in a “coma”
19.11.2014
The USD/JPY pair storms new highs midweek - the yen was sent into a "knockout" after the decision by the Bank of Japan.
The Japanese yen is now not to be envied - after comments from the BOJ and the conservation of incentive programs and the repurchase of assets in their previous form, the USD/JPY pair stunningly easily went on to storming new heights, gathering all the solid technical resistances “on the road.”
The last meeting of the Bank of Japan ended predictably. The regulator has retained the monetary policy unchanged and the incentive program is still evaluated all at 80 trillion yen. The decision was made with 8 votes "for" and 1 - "against." To the external risks that are usually marked by the Japanese regulator, now the weak European inflation is added - but here there is no crime, just the list of risk factors that the BoJ includes are increasingly conjugated points.
The short-term expectations for inflation are reduced; the tone in regard to the consumer price index is clearly softer. The valuation of exports has slightly improved, and it is "more or less stable."
The softening of the tone of the Bank of Japan puts stronger pressure on the yen - perhaps even more than would an affect from the revision of credit conditions. The closest 'bullish' goal in the USD/JPY pair is 117.85.
RoboForex Analytical Department
The Japanese yen is now not to be envied - after comments from the BOJ and the conservation of incentive programs and the repurchase of assets in their previous form, the USD/JPY pair stunningly easily went on to storming new heights, gathering all the solid technical resistances “on the road.”
The last meeting of the Bank of Japan ended predictably. The regulator has retained the monetary policy unchanged and the incentive program is still evaluated all at 80 trillion yen. The decision was made with 8 votes "for" and 1 - "against." To the external risks that are usually marked by the Japanese regulator, now the weak European inflation is added - but here there is no crime, just the list of risk factors that the BoJ includes are increasingly conjugated points.
The short-term expectations for inflation are reduced; the tone in regard to the consumer price index is clearly softer. The valuation of exports has slightly improved, and it is "more or less stable."
The softening of the tone of the Bank of Japan puts stronger pressure on the yen - perhaps even more than would an affect from the revision of credit conditions. The closest 'bullish' goal in the USD/JPY pair is 117.85.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.