The yen is casually strengthening
22.05.2015
The USD/JPY pair is falling on Friday, although the yen still has no compelling reasons to strengthen its position.
The meeting of the Bank of Japan was as neutral as the previous two. The entire structure of the monetary policy remained unchanged, starting with the preservation of volumes of purchase of assets in the amount of 80 trillion yen and ending with the goals for inflation. However, there was also an interesting point: for example, one of the voting monetary politicians, Mr. Takahide Kiut urged the BoJ to cut purchases to 45 trillion yen. He is not saying this for the first time, but his voice is still the only "hawk".
By the way, Kiut has enough valid arguments. He believes - and rightly so - that the long-term measures to mitigate the monetary and fiscal conditions, sooner or later will harm the economy. So it may be, such a scenario can not be excluded, especially since the Bank of Japan had never said exactly how it intends to phase out its stimulation policy and, consequently, what it may mean for the Japanese economy.
The BoJ again desisted from changing the target for GDP and inflation. All final comments were the same as a month ago, with minor modifications.
Usually for the Japanese yen good news are the ones that are not too pleasant throughout the economy. Plus, investors continue to use the temporary weakness of the US dollar. Hence, this is what most likely formed the present trading channel.
RoboForex Analytical Department
The meeting of the Bank of Japan was as neutral as the previous two. The entire structure of the monetary policy remained unchanged, starting with the preservation of volumes of purchase of assets in the amount of 80 trillion yen and ending with the goals for inflation. However, there was also an interesting point: for example, one of the voting monetary politicians, Mr. Takahide Kiut urged the BoJ to cut purchases to 45 trillion yen. He is not saying this for the first time, but his voice is still the only "hawk".
By the way, Kiut has enough valid arguments. He believes - and rightly so - that the long-term measures to mitigate the monetary and fiscal conditions, sooner or later will harm the economy. So it may be, such a scenario can not be excluded, especially since the Bank of Japan had never said exactly how it intends to phase out its stimulation policy and, consequently, what it may mean for the Japanese economy.
The BoJ again desisted from changing the target for GDP and inflation. All final comments were the same as a month ago, with minor modifications.
Usually for the Japanese yen good news are the ones that are not too pleasant throughout the economy. Plus, investors continue to use the temporary weakness of the US dollar. Hence, this is what most likely formed the present trading channel.
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.