The USD/JPY pair has been rising since the beginning of the week; the Bank of Japan intends to continue to decrease the rates.
The Japanese Yen is still under rather moderate pressure in the pair with the USD. The current quote for the instrument is 103.10.
In the middle of the week, the Governor of the Bank of Japan, Mr. Kuroda, noticed that for further easing of the monetary policy in the country, the interest rates should be decreased. Of course, no one is going to do it right away, but investors want this issue to be clear. The interest rate will be changed depending on the situation in the economic system. According to the words of the monetary politician, if the inflation reaches the target, the rates will go up. We remind you that the target is 2%.
The comments about strong intentions of the BoJ were against the Yen, because right now we can’t see any essential positive changes when it comes to the inflation issue.
Using QE and other fiscal tools of the BoJ to boost the economy pays off, but the inflation target is still too far away.
The Yen can move to 102.0 – 102.50, but it’s likely to stay there.
RoboForex Analytical Department
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