BNB Price Prediction: Binance at risk of dropping back to $250 on back of BoJ event


  • Binance Coin price was very much exposed to the Bank of Japan monetary policy decision overnight.
  • BNB could see its rally trashed and price action crash toward $250.
  • Traders must have a trading plan from now on to contain losses overnight.

Binance Coin (BNB) price is at risk of a very big monetary and political shift in global markets as the Bank of Japan is set to communicate overnight. The risk can be measured up to the dissolving floor of the Swiss Franc against the Euro and the US Dollar or the cap on the Czech Koruna against the Euro and US Dollar. This time the Bank of Japan could be letting loose its yield curve control after a decade and leave markets on their own with no active buyer anymore. Japanese yields are at risk of jumping massively, triggering a sell-off in risk assets across the board.

Binance Coin price first in line to get slaughtered

Binance Coin price can get a beating on the back of this risk event. The Bank of Japan has been an active buyer for almost a decade now in order not to let yields rise too high, to keep lending cheap for Japanese companies, and give its currency a competitive advantage for its exports. Should the BOJ let go of that control, markets would lose a massive certainty and reach an impasse as sellers and sell orders would remain unmatched against a handful of buyers. Japanese yields should be higher, making the currency stronger and triggering risk across the globe as traders would need to manage massive portfolio reshuffles and write-offs on the back of this event.

BNB will be among the first victims on the chopping block as traders head for the exit on any risk asset. Equities and cryptocurrencies would see a blood-red day, possibly even the worst of the past two years, as this seismic shift at the central bank would trigger massive recession fears. Binance Coin price looks to hold with that backdrop a fair value near $250. This would not completely erode this early rally of 2023 but would still pair back roughly 17% worth of gains. 

BNB/USD daily chart

BNB/USD daily chart

A rule of thumb in central banks and global markets is that central banks often try to push through their monetary policy with as less possible market shock. That would mean that instead of triggering the release of the yield curve control, the BoJ further communicates and reveals what it wants to do so that the markets can start pricing at a slow pace at the turn of events that are bound to happen. Expect a small step back towards $292.10 at the monthly R1 one support before jumping higher against $336.50 near the monthly R2 resistance level.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Google, Apple could remove Binance from their app store on Philippines SEC request

Google, Apple could remove Binance from their app store on Philippines SEC request

The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds. 

More Binance News

XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.

More Ripple News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

More Cryptocurrencies News

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.

More Cryptocurrencies News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP