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BOJ Stands Firm
JPY has come under heavy selling pressure today as the BOJ kept rates on hold at its latest monetary policy meeting overnight. Despite simmering speculation that the bank might be approaching a shift in monetary policy, new BOJ chief Ueda held policy steady. Ueda warned that the bank would remain patient in keeping its huge stimulus program in place while it waits for signs that the uptick in inflation has become more sustainable.
In No Rush to Exit Stimulus
Despite both the Fed and the ECB taking a more hawkish stance on their rates outlook, in line with upward revisions to inflation forecasts, the BOJ continues to buck the trend. When taking over the role of former governor Kuroda, Ueda warned that the bank would not be in a rush to exit stimulus, despite market chatter, and it seems that traders are now starting to understand the sincerity of this message. For now, JPY risks remain tilted lower with USDJPY likely to continue to push higher against the backdrop of a hawkish Fed.
Technical Views
USDJPY
The recent correction lower in USDJPY found plenty of support into the 138.03 level with price since recovering higher. The market is now fast approaching a fresh test of the 142.21 level and the bull channel top. With momentum studies climbing, the focus is on a further push higher here.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.