Forex Flash: BoJ easing to continue for a long time - Commerzbank

FXstreet.com (Barcelona) - The market was disappointed on the BoJ's policy announcement despite the further JPY 11 trillion in asset purchases, while at the same time initiating a new lending programme for banks. The unsustainable USD/JPY prices around or above 80 were quickly lost in yesterday's Asian session, but weakness did not continue intraday. “From my point of view this offers the possibility of a further attempt on the 80 mark as soon as the market begins to focus on further BoJ measures over the coming months, as the central bank announced in yesterday’s statement that the expansionary measures would be continued until the short term inflation target of 1% was reached”, wrote Commerzbank analyst Lutz Karpowitz, not expecting such target to be reached any time soon, taking recent inflation rates of -0.4% (August) and -0.7% (September, Tokyo area).

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 securities. 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 Forex 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.

RELATED TOPICS