The USD/JPY pair is being corrected to the upside on Tuesday after a “disastrous” Monday.
On Tuesday afternoon, the Japanese Yen is retreating in the pair with the US Dollar. It seems like a correction after yesterday’s movement. The current quote for the instrument is 100.45.
Shinzō Abe, the Prime Minster of Japan, told today that he fully trusted the Bank of Japan and perspectives of its monetary policy. It’s not the first time when Abe says he is completely supportive of the BoJ – in this case the fact that politics and economy are united is very important, especially when the regulator’s fiscal actions don’t seem so obviously efficient.
On Tuesday, Mr. Hiroshi Nakaso, a senior BoJ official in charge of international affairs, said that the QE program alone was not enough for the economic stimulus in Japan. According to his words, it’s not going to help the inflation to reach the target of 2%. He also emphasized that when implementing economic reforms, one shouldn’t forget about structural reforms as well. Only in this case, injections of cash might be more efficient.
Investors are very careful in monitoring the USA situation as yesterday the country witnessed the first televised debates featuring two leading candidates for presidency, Donald Trump and Hillary Clinton. Clinton won, and the US Dollar obtained some support. It’s more than a month of the presidential race until the elections, and the closer the date of the elections is, the more influence it will have on the balance of power on the currency market.
RoboForex Analytical Department
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