However, nothing much was said nor decided, keeping everything unchanged. There is rising political pressure on the BoJ to further ease and the Economic and Fiscal Policy Minister Seiji Maehara attended at the meeting to do so. “I have strong concerns about the lingering appreciation of the yen and deflation. I attended today’s BOJ meeting to express such concerns of mine,” he said.
The USD/JPY eased overnight from 78.57 down to 78.27 low and is seen bouncing to 78.40. Commerzbank analysts believe the USD/JPY is stalling just ahead of the base of the cloud at 78.87, and so, near term consolidation is expected, though there are buy signals on the DMI and slow stochastics indicator. “This is viewed positively and we look for a rally to the top of its cloud at 79.26/27”, wrote analyst Karen Jones