Breaking: USD/JPY jumps as BOJ keeps policy settings steady

FXStreet Team FXStreet

The Bank of Japan (BOJ) board members decided on Thursday to make no changes to its monetary policy settings, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%. The announcement comes after the central bank concluded its two-day policy review meeting.'

Summary of the statement

BOJ made decision on YCC by unanimous vote.

Boj leaves unchanged its forward guidance on interest rates, says expects short- and long-term policy rates to remain at 'present or lower' levels.

Boj leaves unchanged its guidance on policy bias, says will take additional easing steps without hesitation as needed with eye on pandemic's impact on economy.

Must be vigilant to financial, fx market moves and their impact on japan's economy, prices.

Japan's inflation expectations heightening.

Japan's economy picking up despite rising commodity prices.

Market reaction

The yen saw a fresh selling wave on the expected BOJ announcement, driving the USD/JPY pair higher above 145.00. The pair was last seen trading +0.83% on the day at 145.26, the highest level in 24 years.

About BOJ Interest Rate Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.

Author

FXStreet Team

FXStreet

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ripple collaborates with Aviva Investors to tokenize funds as XRP interest declines

Ripple (XRP) exhibits subtle recovery signs, trading slightly above $1.40 at the time of writing on Thursday, as crypto prices broadly edge higher. Despite the metered uptick, risk-off sentiment remains a concern across the crypto market, as retail and institutional interest dwindle.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.